Analysis-Exodus by Wall Street banks from climate group worries advocates

Analysis-Exodus by Wall Street banks from climate group worries advocates

by

Wall Street Banks’ Exodus from Climate Group Raises Concerns Among Advocates

Recent withdrawals by major U.S. banks from a climate coalition worry advocates about the industry’s commitment to fossil fuel reduction

Business

Goldman Sachs, Wells Fargo, Citi, Bank of America, Morgan Stanley, JPMorgan, Climate Change, Net-Zero Banking Alliance, U.S., Fossil Fuels

LONDON: So, it looks like some big U.S. banks are jumping ship from a major climate group, and it’s got a lot of folks worried. Recently, Goldman Sachs announced it was leaving the Net-Zero Banking Alliance, and soon after, Wells Fargo, Citi, Bank of America, and Morgan Stanley followed suit. This is a big deal because these banks were supposed to help align their financing with climate goals.

The exit of these major players means that now only JPMorgan remains among the top U.S. banks in the alliance. It’s like a breakup, and not a happy one at that. There’s a lot of chatter about how this could signal a shift away from serious climate commitments, especially since these banks are some of the biggest funders of fossil fuels.

Advocates are really concerned. They feel that this move shows that climate change is slipping down the priority list for these banks. Jeanne Martin from ShareAction pointed out that it’s troubling when these banks are among the largest financiers of fossil fuel projects.

Interestingly, while JPMorgan is still in the alliance, it hasn’t said much about its future plans. The other U.S. banks that left are smaller players, but the pressure from Republican politicians about potential antitrust issues has been looming over these decisions.

With the recent political shifts in the U.S., there’s been a backlash against environmental investing, which might have influenced these banks’ choices. They’ve mostly avoided giving clear reasons for their exits, but they claim they’re still committed to helping clients transition to a low-carbon economy.

A recent analysis showed that these banks actually made more money from fossil fuels than from green energy. It’s a bit of a head-scratcher, right? Even with these exits, the NZBA still has a solid number of members globally, with 142 banks from 44 countries.

European banks are now looking to step up and show they can be more ambitious without the U.S. banks holding them back. It’s a mixed bag, and it’ll be interesting to see how this all plays out in the future.

[rule_2]