Vanguard has announced that it is to leave the Net Zero Asset Managers initiative.

Vanguard joined the imitative last year but now says, “such industry initiatives can advance constructive dialogue, but sometimes they can also result in confusion about the views of individual investment firms”. It said that the decision is necessary to provide “clarity” to investors.

In a statement to the Financial Times, Kirsten Snow Spalding a founding partner of NZAM said, “It is unfortunate that political pressure is impacting this crucial economic imperative and attempting to block companies from effectively managing risks”.

The initiative’s 291 members have committed to reaching net zero carbon emissions by 2050.