Many US banks have withdrawn climate change coalition The days leading up to Donald Trump’s presidential inauguration.
Yesterday evening, Morgan Stanley became the latest US bank to withdraw from the Net Zero Banking Alliance, amid increasing pressure on financial institutions from Republican lawmakers.
Despite leaving the partnership, Morgan Stanley said in a statement that its commitment to achieving carbon targets “remains unchanged.”
Citigroup and Bank of America left the group Earlier this week, Wells Fargo and Goldman Sachs pulled out in early December.
The United Nations-backed alliance, which includes more than 140 banks with more than $70tn (£56.5tn) in assets, is set to open in 2021 with the aim of bringing the financial sector into line with the Paris climate agreement. Established.
This is an initiative of the Glasgow Financial Alliance for Net Zero, co-chaired by Michael Bloomberg and former Bank of England governor Mark Carney.
Other voluntary industry climate alliances, such as the Net Zero Asset Managers Initiative, the now-defunct Net Zero Insurance Alliance, and the Climate Action 100+ Investor Initiative, have also recently led similar major industry initiatives. We are seeing player withdrawals.
A key reason why many financial institutions are leaving these institutions is pressure from right-wing US politicians who are trying to steer banks away from sustainable investing.
This problem is troubling for the Giants. US asset management companies such as BlackRockhas faced criticism and attacks from Republican politicians.
Last year, BlackRock was sued by the Tennessee attorney general. ESG policyMeanwhile, it has been excluded from public pension funds in several US states due to its support for sustainable investments.
In November, Scottish asset manager Baillie Gifford Withdrew from both the Climate Action 100+ Group and the Net Zero Asset Managers Initiative After being embroiled in a months-long scandal over the sponsorship of a literary festival.
A Baillie Gifford spokesperson said: “Our membership is in dispute and this risks diverting us from our core responsibilities.” City AM at that time.
The move comes despite concerns from analysts that it could lead to a watering down of climate pledges, increasing the regulatory burden on financial institutions that employ sustainability-qualified talent. Therefore, there is less need to join such groups.
By city AM
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