(Reuters) – Vanguard is pulling out of the main financial alliance on tackling climate change, the world’s second-largest fund manager said on Wednesday.
The alliance, Net Zero Asset Managers (NZAM), was launched in late 2020 to encourage asset managers to reach net zero emission target by 2050 and help keep a rise in global temperature to 1.5 degrees Celsius.
“We have decided to withdraw from NZAM so that we can provide the clarity our investors desire about the role of index funds and about how we think about material risks, including climate-related risks,” Vanguard said in a statement on its website.
The asset manager said it wanted to make clear that Vanguard speaks independently on matters of importance to its investors.
Vanguard joined the initiative in 2021.
(Reporting by Noor Zainab Hussain in Bengaluru and Ross Kerber in Boston; Editing by Anil D’Silva)
