Several of Wall Street’s largest banks have recently chosen to leave the Net-Zero Banking Alliance, a climate alliance that aims to reduce greenhouse gas emissions to zero by 2050. This move comes just before President-elect Donald Trump takes office.
J.P. Morgan, Wells Fargo, Goldman Sachs, Morgan Stanley, Citigroup, and Bank of America were all part of the alliance since 2021 but have decided to exit the group in December. They have stated that they will continue working towards emission reduction goals independently.
The decision to leave the alliance coincides with Trump’s upcoming presidency, with expectations that he may withdraw from the Paris Climate Agreement and set different emission reduction targets compared to President Biden.
JPMorgan Chase & Co. sign and building exterior seen in New York City. (Plexi Images)
BlackRock, the world’s largest investment firm, has also decided to separate from the Net Zero Asset Managers Initiative, indicating a wider trend of financial institutions distancing themselves from such climate groups.
The banks’ departure from the alliance has raised concerns among environmental advocates, with some criticizing the timing of the exits in response to potential political shifts.
A Wall Street sign in front of the New York Stock Exchange in New York City on Wednesday, July 31, 2024. (Michael Nagle)
These recent developments follow a previous investigation by House Republicans into the banks’ involvement in the alliance, highlighting ongoing debates over climate action within the financial sector.
