Two major U.S. banking institutions, Citigroup and Bank of America, have announced their withdrawal from the Net-Zero Banking Alliance (NZBA). Earlier this month, Wells Fargo and Goldman Sachs also decided to leave the alliance.
The NZBA is a coalition of international banks, established under the aegis of the United Nations, which is focused on structuring their financial operations—including lending, investments, and capital markets—to achieve net-zero greenhouse gas emissions by the year 2050.
Despite Citigroup's pledge to attain net-zero emissions, the institution has opted to exit the NZBA. Similarly, Bank of America has announced its departure but remains committed to collaborating with clients to decrease greenhouse gas emissions.
In the preceding month, significant asset managers BlackRock, Vanguard, and State Street faced a lawsuit from Texas and ten other Republican-led states. The lawsuit alleges that their climate activism has contravened antitrust laws by diminishing coal production and contributing to increased energy costs.
The NZBA is an integral part of the Glasgow Financial Alliance for Net Zero, a UN-supported collective of climate-focused financial groups. Both Citigroup and Bank of America were foundational members of the Glasgow initiative.
