Republicans are praising investment goliath Vanguard Group for pulling out of the Net Zero Asset Managers (NZAM) initiative, the world’s largest climate alliance in the financial industry, amid fierce pressure from conservative lawmakers.
The exit from NZAM by Vanguard, one of the globe’s largest mutual fund managers with some $7 trillion in assets, deals a major blow to the ESG financial movement wherein environmental, social and governance factors play into Wall Street firms’ investment decisions.
Vanguard said that while “such industry initiatives can advance constructive dialogue,” the firm’s involvement in NZAM was inadvertently creating “confusion” among investors.