The Net-Zero Banking Alliance , hit by an ongoing wave of defections, is pausing work while weighing a new structure, the UN-affiliated group said today.
Why it matters: It’s a stark sign of the ESG pullback on Wall Street and the financial sector more broadly, though many banks say they remain committed to low-carbon transition.
Driving the news: Remaining members will vote on a “proposed transition from a membership-based alliance to establishing its guidance as a new framework initiative,” the group said.
- It’s halting work during the voting process and will share the outcome at the end of September.
State of play: The NZBA is among the constellation of financial industry groups that work with members to align their lending, investment and capital markets activities with net-zero in 2050.
- Major banks and investment firms have been abandoning the affiliations, partly under political and legal pressure from U.S. Republicans.
- Bank of America, Morgan Stanley, Goldman Sachs and JPMorgan and other U.S.-based heavyweights have exited the NZBA since Donald Trump’s election.
- But the defections now include banks in multiple countries. Another group, the Net Zero Asset Managers initiative, said in January it’s reviewing its structure and suspending work.
What’s next: The NZBA “encourages the banking sector to remain steadfast in implementing their net-zero commitments,” it said.