US banks Citigroup and Bank of America have joined Wells Fargo and Goldman Sachs in exiting the Net-Zero Banking Alliance (NZBA). The alliance aims to reduce carbon emissions from its members’ lending portfolios to zero by 2050. Citi cited progress toward its own net-zero goals, while BofA stated it would continue working with clients on climate issues.
The move follows criticism of financial firms for their ties to the fossil fuel industry and opposition from Republican policymakers who want to limit financing of fossil fuels. Last month, large asset managers BlackRock, Vanguard, and State Street were sued by Texas and other states over alleged antitrust violations related to climate activism.
The NZBA was initially formed to promote sustainable banking practices, but its efforts have been scaled back amid pressure from lawmakers. The alliance’s departure marks a shift in the financial industry’s approach to addressing climate change.
Source: https://www.reuters.com/business/finance/citigroup-joins-us-lenders-exiting-net-zero-banking-alliance-2024-12-31