US Banks Abandon Net-Zero Finance Alliance Amid Rising ESG Scrutiny

Upstream

The exodus of major US banks from the Net Zero Banking Alliance continues, with JP Morgan being the latest to announce its departure. This move follows similar decisions by Goldman Sachs, Citigroup, Morgan Stanley, Wells Fargo, and Bank of America, as they face mounting Environmental, Social, and Governance (ESG) pressure. The alliance, which aims to support net-zero emissions, has faced criticism and challenges, prompting these financial institutions to reassess their involvement. As ESG considerations become increasingly important, banks must navigate complex sustainability issues and stakeholder expectations. This trend highlights the growing significance of sustainable finance and climate risk management in the banking sector.