US banking giants Morgan Stanley, Citigroup, Bank of America, Wells Fargo, and Goldman Sachs are withdrawing from the UN-backed Net Zero Banking Alliance (NZBA) in the final weeks before a new Trump administration takes office. The departure of these major lenders is seen as a response to growing political pressure on “woke” investing.
The NZBA was formed in 2021 with several banks touting their initial membership as a commitment to net-zero goals. However, critics like Ohio Republican Jim Jordan have attacked financial environmental alliances, calling them a “climate cartel.”
The departure of these banks comes after JPMorgan Chase, State Street, BlackRock, and Pimco also left the Climate Action 100+ coalition, another global initiative aiming to limit greenhouse gases. Last year, Jordan called the withdrawals “big wins for freedom and the American economy.”
Despite this, some major banks remain part of other climate initiatives, including the Glasgow Financial Alliance for Net Zero. The alliance has recently loosened its participation requirements, allowing firms to meet their own goals rather than adhering to Paris Climate agreement targets.
The exit of these big banks from the NZBA is seen as a reaction to the increasing focus on “woke” investing and the upcoming Trump administration’s stance on climate issues.
Source: https://finance.yahoo.com/news/wall-street-banks-exit-climate-alliance-as-trump-20-nears-163413337.html