Vanguard quits Net Zero Asset Managers initiative

Cites the need for 'clarity'

Vanguard has pulled out of the Net Zero Asset Managers initiative, stating that the move was necessary to provide “clarity” to investors and show that the firm “speaks independently”.

The world's second largest fund manager said yesterday (7 December) that it would be leaving the group, whose members commit to reaching net zero carbon emissions by 2050. In a statement, Vanguard attributed the decision to the initiative resulting in "confusion about the views of individual investment firms," especially "regarding the applicability of net zero approaches to the broadly diversified index funds". It continued: "After a considerable period of review, we have decided to withdraw from NZAM so that we can provide the clarity our investors desire about the role of index fun...