Outside Publication
Net Zero Pledges from Asset Managers Can Align Funds with ESG Goals. They Can Also Breach Fiduciary Duty and Raise Other Conflicts, Corporate Compliance Insights
February 02, 2022Many asset managers have signed up for the Net Zero Asset Managers Initiative (NZAMI), a commitment to supporting the goal of net-zero greenhouse gas emissions by 2050. However, as partners Lance Dial and Miranda Lindl O’Connell argue in an article published by Corporate Compliance Insights, the implementation of NZAMI can create unanticipated challenges, among them issues with fiduciary duties, client reporting, and portfolio management.
“It can impact many of the asset manager’s stakeholders, including existing clients,” Lance and Miranda write, adding that those wishing to make the commitment “can successfully navigate the various needs of each of their stakeholders by establishing and executing a strategic plan and developing and implementing a NZAMI Commitment policy.”
