U.S. Banks Quit Climate Alliance as ESG Backlash Grows
Several major U.S. banks have withdrawn from the Net-Zero Banking Alliance (NZBA), a global initiative to combat climate change. This exodus comes amidst growing opposition to environmental, social, and governance (ESG) measures, particularly with the return of Donald Trump to the White House.
Morgan Stanley is the latest to leave the NZBA, following the departures of Bank of America, Citigroup, Wells Fargo, and Goldman Sachs. These banks have cited concerns about potential legal action and antitrust threats from Republican politicians.
Despite their withdrawal, the banks maintain their commitment to achieving net-zero emissions goals and supporting clients in their decarbonization efforts. They emphasize that their decisions do not signify a retreat from their environmental commitments.
The NZBA's future remains uncertain as opposition to ESG intensifies. Republican-led states have already penalized financial institutions for employing ESG practices, arguing that they harm fossil fuel industries. Canadian banks have also faced similar pressures, with some having to assure governments that they continue to lend to the oil and gas sector.
The House Judiciary Committee has also launched an investigation into potential "antitrust collusion" among financial institutions and environmental activists to impose ESG goals on American companies.
The NZBA has faced internal friction as well, with concerns about legal risks and the potential need to withdraw support for oil and gas clients. The alliance's chair has attempted to alleviate these concerns by clarifying that the NZBA does not have decision-making authority over its members.
The exodus of major U.S. banks from the NZBA reflects the growing political and legal challenges surrounding ESG initiatives. As opposition intensifies, the future of such alliances and their role in combating climate change remains uncertain.
8 Comments
Rotfront
We need to stand up to these powerful corporations and protect our planet. Let's not give up the fight!
Matzomaster
It's time for a boycott of these banks. Let's show them that we won't tolerate their environmental hypocrisy.
Karamba
The investigation by the House Judiciary Committee is a step in the right direction. We need to expose this collusion.
Marishka
This is outrageous! These banks are putting profits before the planet. Disgusting!
Pupsik
It's understandable that banks are concerned about legal challenges. They have a fiduciary duty to their shareholders.
Michelangelo
This is a blatant attack on the environment and our future. We need to hold these banks accountable.
Raphael
Republicans will do anything to protect the fossil fuel industry, even if it means destroying the planet.
Donatello
This proves that ESG was always just a PR stunt. It's time we face reality.