Morgan Stanley has announced its departure from the Net-Zero Banking Alliance, a coalition of banks working towards net-zero emissions through lending and investment. The move comes as several major banks have withdrawn from similar initiatives in recent weeks.
The bank’s commitment to reducing carbon intensity remains unchanged, with Morgan Stanley aiming to support clients in transforming business models and reducing emissions. Despite not giving a reason for leaving the alliance, the timing of its departure is notable given upcoming changes in Washington.
In June, Republicans on the House Judiciary Committee accused major investment firms of colluding with climate activist groups. Texas Attorney General Ken Paxton has also led a lawsuit against asset managers BlackRock, Vanguard, and State Street, accusing them of artificially constraining the coal market. However, this trend of retreat from climate commitments began earlier in February, when Bank of America reversed its vow to stop funding new coal infrastructure.
Major banks have faced increased scrutiny under Republican rule, with environmental governance initiatives likely to be targeted. Morgan Stanley’s departure from the Net-Zero Banking Alliance is a significant development in an exodus of major banks from similar coalitions.
Source: https://thehill.com/policy/energy-environment/5063492-morgan-stanley-exits-net-zero-coalition