Citi and Bank of America have withdrawn from a global climate alliance for banks, citing concerns about regulatory requirements and potential impact on business. The move comes as governments worldwide push for increased environmental regulations in the financial sector.
The United Nations-backed Financial Stability Board (FSB) had launched the Climate Action Framework to help banks reduce their carbon footprint. However, Citi and BofA have expressed reservations about complying with the proposed standards, which they believe could lead to increased costs and regulatory burdens.
Their decision follows similar withdrawals from other major financial institutions, including HSBC and Mitsubishi UFJ Financial Group.
Source: https://www.ft.com/content/acaeff4c-175c-41a0-806b-e870f1f1f53d