The six largest US banks – JP Morgan, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley – have all withdrawn from the UN-sponsored net zero banking alliance (NZBA). This move comes as Donald Trump is set to be inaugurated as president, expected to bring significant political backlash against climate action.
Analysts believe that the withdrawals are a tactic by US banks to avoid criticism from right-wing politicians, who are likely to target “anti-woke” policies aimed at reducing greenhouse gas emissions. The NZBA requires member banks to align their lending and investment activities with net zero emissions by 2050 or earlier.
Despite this, several senior analysts remain optimistic about the NZBA’s future, citing its remaining members as a significant influence in shaping global banking practices. With approximately 40% of global banking assets under management, these banks are unlikely to have a major impact on climate action.
JP Morgan cited regulators’ increasingly stringent standards and reporting requirements as the reason for its departure, while Goldman Sachs said it had made progress in achieving its net zero goals. Wells Fargo only confirmed its withdrawal from the alliance, while Bank of America and Morgan Stanley did not respond to requests for comment.
Source: https://www.theguardian.com/business/2025/jan/08/us-banks-quit-net-zero-alliance-before-trump-inauguration