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Bank of America and Citigroup announced Tuesday they are leaving the world’s largest climate change alliance for banks. This is the latest sign that U.S. companies may backtrack from climate change targets during President Donald Trump’s second term.
BofA and Citi are the latest major U.S. financial institutions to leave the Net Zero Banking Alliance this month, following Goldman Sachs and Wells Fargo. The United Nations-backed Climate Pledge, which Citi helped launch in 2021, was hailed as a major step towards curbing global warming by restricting investment in industries that contribute to greenhouse gas emissions.
Citi said in a statement that despite leaving the alliance, it remains committed to climate goals and will refocus its funding to emerging markets to help them tackle climate change. He said it was a plan.
“We continue to work with our customers in their transition to a low-carbon economy, while helping ensure energy security,” the bank said.
BofA said in a statement that it works with customers to meet climate goals.
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U.S. banks and other large corporations are under increasing pressure from Republican lawmakers to distance themselves from pledges that would force them to cut lending to the oil and gas industry and other traditional energy producers.
That pressure has increased even further following President Trump’s victory.
In November, Republican-led states filed a federal antitrust lawsuit against BlackRock, State Street, and Vanguard, accusing the three largest U.S. index fund managers of using their investment powers to pursue net-zero carbon emissions goals. It was accused of restricting supply.
Additional reporting by Kenza Bryan in London and Patrick Temple-West in New York
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