Fossil-free fund manager Green Century quits Net Zero initiative (updated)

Fossil

14/04/2023 03:04

(Adds comment from climate group officials, reporting credit,
byline)
    By Ross Kerber
       April 13 (Reuters) - Green Century Capital Management
said on Thursday it has left a high-profile financial industry
effort to cut carbon emissions, citing compliance challenges.
    Leslie Samuelrich, president of the firm known for its
fossil-free funds, said effective March 2 it had withdrawn from
the United Nations-backed Net Zero Asset Managers (NZAM)
initiative.
    The group was launched in 2020 to encourage fund firms to
reach net zero emission targets and limit the rise in global
temperatures. But it and similar efforts have given rise to
antitrust concerns including from U.S. Republican politicians. 
Vanguard Group left NZAM in December, citing a need for 
independence. 
    Samuelrich said Green Century's situation was different and 
somewhat unique, because unlike Vanguard and other major fund
firms it does not own oil or coal stocks, making it harder for
her firm to fulfill NZAM's pledges.
    While she supports NZAM's efforts, she said, "There are
challenges with compliance for us and I can’t ignore that."
    Green Century currently has about $1 billion under
management.
    Officials involved with NZAM including Kirsten Spalding,
vice president at sustainability nonprofit Ceres and chair of
NZAM's staff working group, said Green Century is the first
North American asset manager to leave since Vanguard's
departure. Three smaller European firms have also left since
then.
    But 12 asset managers have joined since early December,
Spalding said. She said that in all NZAM now has 307 signatories
with more than $59.3 trillion in collective assets under
management.
    Green Century's exit from NZAM was first reported by the
publication Responsible Investor.       
    

 (Reporting by Ross Kerber; Editing by Susan Fenton and Kenneth
Maxwell)
 ((ross.kerber@thomsonreuters.com; (617) 412 0093;))