Several major US banks have left the Net-Zero Banking Alliance (NZBA), a global programme launched under the aegis of the United Nations in 2021 to promote carbon neutrality, but they say they remain committed to the cause.
When contacted by French news agency AFP, banking groups Bank of America and Citi confirmed on Monday that they left the Alliance at the end of 2024.
Morgan Stanley did not respond immediately, but on Monday this investment bank was no longer on the list of US banks that are members of the NZBA.
Five US banks have left the NZBA
According to the programme's website, five US banks have left as at 6 December: Goldman Sachs, Wells Fargo, Citi, Bank of America and Morgan Stanley. Only four remain members, including JPMorgan Chase.
When asked about its intentions, JPMorgan Chase had no immediate reaction.
A spokesperson for the Alliance said it did not wish to comment on the successive departures.
The NZBA was launched as part of the United Nations Environment Programme Finance Initiative (UNEP-FI) to encourage banks to focus their efforts on the sectors that emit the most greenhouse gases and to play a key role in the transition to a carbon-neutral economy.
Alliance's membership tripled since 2021
On its website on Monday morning, the Alliance listed 142 banks from 44 countries with assets of $64,000 billion. According to the Alliance, its membership has more than tripled since 2021.
According to US media reports, in November US banks and asset managers came under legal attack from a dozen conservative states, which argued that such initiatives violated antitrust laws, affected the development of fossil fuels and drove up prices.
"We will continue to work with our customers on this issue and to meet their needs," Bank of America said, putting the consequences of its exit from the NZBA into perspective and confirming its goal of carbon neutrality by 2050, as part of the Paris Agreement.
Despite withdrawals, banks confirm commitment to carbon neutrality
Citi is similarly committed, saying it supports the Glasgow Financial Alliance for Net Zero (GFANZ) - which brings together over 500 institutions that are members of seven sector-specific net-zero alliances - in its decision to focus on emerging markets.
Citi added that, as part of this evolution, and its progress towards its own neutrality goals, it had decided to leave the Net-Zero Banking Alliance and focus its efforts on supporting GFANZ "in this new phase."
A report by the NGO Reclaim Finance, published in September, concluded that most of the decarbonisation targets set by the 30 largest banks in the Alliance were not effective and needed to be rethought.
