Wall Street bails on climate change coalition after Republican pressure
The financial sector appears to be getting cold feet about efforts to curb the effects of climate change. Five of the six largest banks in the United States have pulled out of the Net-Zero Banking Alliance (NZBA) since Dec. 6th, according to a recent report by Reuters. The first bank to do so was Goldman Sachs, which exactly one month ago announced it was leaving the NZBA because their institution had supposedly “made significant progress in recent years on the firm's net zero goals and we look forward to making further progress.” They were swiftly followed by Wells Fargo, Citi, Bank of America and Morgan Stanley. Only JPMorgan remains among the Big Six U.S. banks. The NZBA committed the Big Six banks to zero out greenhouse gas emissions by 2050. The overwhelming majority of scientists agree that climate change is caused by burning fossil fuels and other activities that emit greenhouse gases. When present in excessive quantities in the atmosphere, gases like methane and carbon dioxide trap heat, eventually leading to global heating, which in turns causes droughts and heat waves to become more frequent and more intense, sea levels to rise and hurricanes to become more extreme. Despite the alarm of climate scientists, Reuters reports the Big Six banks are reacting to pressure from Republican politicians who oppose taking climate action on principle. They have argued that the NZBA could be in breach of antitrust laws if they reduced financing to fossil fuel companies. Instead, these same institutions may feel incentivized to move away from environmentally-friendly investment policies. The banks themselves publicly insist that they remain committed to their environmental goals. A Bank of America spokesperson said the financial institution would “continue to work with clients on this issue and meet their needs,” while Morgan Stanley said its “commitment to net-zero remains unchanged.” Because large banks provide fossil fuel companies with the investments they need to do business, climate activists often point to large banks as main culprits in climate change. Speaking with Salon in June, the Sierra Club's Fossil-Free Finance senior campaign strategist Adèle Shraiman explained that “banks can play a key role in driving the climate crisis through their financing activities.” She added, “Many of the world’s largest banks, including the top banks on Wall Street, lend billions of dollars to fossil fuel companies, enabling the buildout of the deadly and destructive industry that is most responsible for the greenhouse gas emissions causing climate change." Read more about this topic
Goldman Sachs, Wells Fargo, Morgan Stanley, Citi and Bank of America all left the Net-Zero Banking Alliance
The financial sector appears to be getting cold feet about efforts to curb the effects of climate change. Five of the six largest banks in the United States have pulled out of the Net-Zero Banking Alliance (NZBA) since Dec. 6th, according to a recent report by Reuters.
The first bank to do so was Goldman Sachs, which exactly one month ago announced it was leaving the NZBA because their institution had supposedly “made significant progress in recent years on the firm's net zero goals and we look forward to making further progress.” They were swiftly followed by Wells Fargo, Citi, Bank of America and Morgan Stanley. Only JPMorgan remains among the Big Six U.S. banks.
The NZBA committed the Big Six banks to zero out greenhouse gas emissions by 2050. The overwhelming majority of scientists agree that climate change is caused by burning fossil fuels and other activities that emit greenhouse gases. When present in excessive quantities in the atmosphere, gases like methane and carbon dioxide trap heat, eventually leading to global heating, which in turns causes droughts and heat waves to become more frequent and more intense, sea levels to rise and hurricanes to become more extreme.
Despite the alarm of climate scientists, Reuters reports the Big Six banks are reacting to pressure from Republican politicians who oppose taking climate action on principle. They have argued that the NZBA could be in breach of antitrust laws if they reduced financing to fossil fuel companies. Instead, these same institutions may feel incentivized to move away from environmentally-friendly investment policies.
The banks themselves publicly insist that they remain committed to their environmental goals. A Bank of America spokesperson said the financial institution would “continue to work with clients on this issue and meet their needs,” while Morgan Stanley said its “commitment to net-zero remains unchanged.”
Because large banks provide fossil fuel companies with the investments they need to do business, climate activists often point to large banks as main culprits in climate change. Speaking with Salon in June, the Sierra Club's Fossil-Free Finance senior campaign strategist Adèle Shraiman explained that “banks can play a key role in driving the climate crisis through their financing activities.”
She added, “Many of the world’s largest banks, including the top banks on Wall Street, lend billions of dollars to fossil fuel companies, enabling the buildout of the deadly and destructive industry that is most responsible for the greenhouse gas emissions causing climate change."
Read more
about this topic