“These exits reveal the inadequacy of voluntary commitments and underscore the urgent need for state-level leadership and regulation,” Vanessa Fajans-Turner, executive director of Environmental Advocates NY, said in a statement
LONDON: Investment bank Morgan Stanley said on Thursday it had decided to leave the United Nations-backed Net-Zero Banking Alliance, becoming the latest U.S. lender to quit the sector’s top global climate coalition.
The decision by Morgan Stanley follows similar moves in recent weeks by Citigroup, Bank of America, Wells Fargo and Goldman Sachs.
Citi and BofA on Tuesday announced their departure from the Net-Zero Bankining Alliance — whose members have committed to aligning their financial activities with the aim of reaching net-zero emissions by 2050
The exits come a few weeks after Goldman Sachs announced its decision to quit NZBA and against a backdrop of climate-focused alliances facing increased scrutiny from the Republican party, which has initiated probes on ESG policies across multiple fronts.
While Morgan Stanley gave no reason for its decision, top banks have been under pressure from some U.S. Republican politicians over their membership, with accusations that any move to limit finance to fossil fuel companies could breach antitrust rules.
Despite leaving the NZBA, Morgan Stanley said in a statement that its commitment to helping the world transition to net-zero carbon emissions “remains unchanged.”
“We aim to contribute to real-economy decarbonization by providing our clients with the advice and capital required to transform business models and reduce carbon intensity,” it said.
The bank said it would also continue to report on its efforts toward previously set 2030 targets to reduce the emissions tied to its loan book.
A U.S.-based environmental advocacy group urged New York state on Thursday to regulate the financial sector and ensure its policies align with climate goals.
“These exits reveal the inadequacy of voluntary commitments and underscore the urgent need for state-level leadership and regulation,” Vanessa Fajans-Turner, executive director of Environmental Advocates NY, said in a statement.