US banks don't care about climate change

In recent weeks, US banks have been rushing to withdraw from one of the world’s largest climate alliances in the banking sector, drawing derision from activists who fear the industry is losing its resolve to take action on fuels, Reuters reported.

Goldman Sachs announced on December 6, 2024, that it would leave the Net Zero Banking Alliance (NZBA).

Wells Fargo, Citi, Bank of America and Morgan Stanley followed suit.

The exit of some of the world’s biggest banks means that the Net Zero Banking Alliance, whose members aim to align their financing with the fight against global climate change, now includes only JPMorgan among the six largest US banks.

The exit ends an unhappy alliance after Republican politicians warned that membership in the group, especially if it led to cuts in funding for fuel companies, could violate antitrust rules.

Although none of the banks cited it as a factor, the two-year backlash in the US against environmental, social and governance investing was the reason for the exits, with a group of Republican politicians, many of them state attorneys general, accusing members of possible antitrust violations.

After the mass exit of US lenders, the alliance still has 142 members from 44 countries with $64 trillion in assets, with 80 European banks accounting for the largest share.

The remaining banks in the coalition include

HSBC

Barclays

BNP Paribas