Major U.S. banks, including Goldman Sachs, Wells Fargo, Citi, Bank of America, and Morgan Stanley, have exited the Net-Zero Banking Alliance (NZBA), leaving JPMorgan as the sole remaining Big Six member. The NZBA, with 142 members globally, aims to align financing with climate goals, but the departures underscore mounting pressure from Republican politicians who claim the alliance’s goals could violate antitrust laws.
Advocates fear the exits signal reduced prioritization of climate action. Jeanne Martin of ShareAction expressed concern, citing these banks’ significant financing of fossil fuels. Patrick McCully of Reclaim Finance warned of potential weakening climate targets, although public announcements on this are unlikely.
The move follows a broader backlash against environmental, social, and governance (ESG) initiatives in the U.S., intensified by Republican electoral wins. Financial data reveals these banks earn more from fossil fuel financing than green energy.
Despite their exit, the banks assert ongoing support for the low-carbon transition. Mindy Lubber of Ceres highlighted their prior strong climate commitments and pledged continued investor pressure for transparency and progress.
European banks, which make up the majority of the NZBA, now face calls to adopt stronger guidelines, previously hindered by U.S. resistance. HSBC, Barclays, and BNP Paribas remain prominent coalition members.
This shift raises questions about the role of major financial institutions in achieving global net-zero goals as the climate crisis intensifies.
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