Vanguard Pledges to be Net-Zero by 2050 with $290 Billion in Assets
Vanguard, the world's second-largest asset manager, said it expects nine funds with a combined $290 billion in assets to meet the world's climate goal by 2050 and be at least halfway there by 2030, attracting criticism from environmentalists for its lack of ambition.
The privately held American firm is one of more than 230 to join the Net Zero Asset Managers project (NZAM), a group of investors dedicated to achieving net-zero greenhouse gas emissions by the middle of the century.
All signatories are responsible for the emissions associated with their investments as part of their membership.
The corporation, however, refused to set a formal target or expectation for the majority of its assets, which total more than $5 trillion and are invested in index funds, many of which comprise high-emission companies with poor climate targets.
Vanguard reported that more than 70% of its equity index fund assets were invested in companies that had some emission reduction goal, however, the majority of them had not yet fully aligned with steps that would get them to net-zero emissions.
Casey Harrell, the Senior Strategist at the Sunrise Project, said:
"Vanguard should be laughed right out of the NZAM for this absurd attempt at a climate target. Vanguard needs to start over and do better."
Eileen Flanagan, Campaign Director of Earth Quaker Action Team, said:
"Climate pledges this inadequate makes us even more determined to build powerful grassroots pressure to wake up Vanguard’s current leadership."
Source: Reuters
