The investment bank Morgan Stanley announced that it will exit the Net-Zero Banking Alliance (NZBA), becoming the latest US lender to leave the leading global climate coalition in the financial sector.

The bank did not provide a specific reason for its decision. However, membership in the NZBA has previously faced heavy criticism from Republican politicians, who oppose restrictions on financing companies involved in fossil fuels. They have accused banks and the organization of violating US antitrust laws. With Donald Trump's upcoming presidency, debates over ESG and climate goals have gained renewed intensity.

Breach of Antitrust Rules

In November 2024, eleven Republican-led states, including Texas, filed lawsuits against major US asset management firms like BlackRock, Vanguard, and State Street, alleging that their climate protection measures hinder coal production and drive up energy prices.

In recent weeks, Citigroup, Bank of America, Wells Fargo, and Goldman Sachs have already terminated their NZBA memberships. This leaves J.P. Morgan Chase as the only remaining major US bank in the alliance.

The organization’s membership list reveals that only four of the 142 banks from 44 countries committed to net-zero goals are based in the U.S. Swiss banks, including UBS, Raiffeisen Schweiz, and the cantonal banks of Zurich, Bern, and Basel-Landschaft, are also among the members.

CO2 Reduction Goals Reiterated

Despite its exit from the NZBA, Morgan Stanley reaffirmed its commitment to the global transition to net-zero emissions. As reported by Reuters, the bank stated, "We aim to contribute to real-economy decarbonization by providing our clients with the advice and capital needed to transform business models and lower carbon intensity."

Similarly, Citigroup and Bank of America have reiterated their dedication to CO2 reduction goals.

They stated that they would continue to report on efforts to achieve the previously established 2030 targets. The CO2 emissions associated with corporate lending will continue to be reduced.

Founded in 2021, the NZBA is the largest global banking climate alliance. Members pledge to align their lending and investment portfolios to achieve net-zero emissions by 2050.