Fossil-free fund manager Green Century quits Net Zero initiative

Fossil

13/04/2023 20:01

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fossil-free funds, said effective March 2 it had withdrawn from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.
    After Green Century's departure, a NZAM representative said
it still has 307 members representing $60 trillion in assets
under management. 

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