Navigating net zero: The challenge for asset managers

Three years ago, in the run-up to COP26, financial institutions rushed to sign up to the Glasgow Financial Alliance for Net Zero (GFANZ). A renewed focus on fiduciary duty, however, combined with concerns about the real-world impact of reducing portfolio emissions, is now prompting asset managers to rethink strategies and methodologies for net zero. Daisy Streatfeild has seen the issue from both sides of the fence. In 2021, she helped set up the Net Zero Asset Managers initiative (NZAM) during her time at the Institutional Investors Group on Climate Change (IIGCC). Today, as sustainability director at emerging markets-focused asset manager Ninety One, she is grappling with how to ensure net zero remains relevant from the industry perspective. In this episode, she talks to RI editor Lucy Fitzgeorge-Parker about the heady days of NZAM’s founding, the recent high-profile departure of Baillie Gifford from the initiative, and how investors can meet the needs of both clients and the climate. Key topics also include transition finance, climate adaptation and the challenges of net zero in emerging markets.