Morgan Stanley decided on Thursday to leave the United Nations-backed climate change alliance, joining rivals Goldman Sachs and Citi in leaving the group amid a conservative backlash over its environmental and diversity efforts. announced.
The Wall Street investment bank did not say why it decided to leave the Net-Zero Banking Alliance, a pledge to achieve net-zero greenhouse gas emissions by 2050.
Citigroup and Bank of America announced their departure from the group earlier this week, and Goldman Sachs and Wells Fargo made similar announcements in early December.
The NZBA declined to comment.
Morgan Stanley said in a statement that it remains committed to achieving net-zero funded emissions and “will continue to report on progress toward our 2030 interim funded emissions goals.” told the Post.
A US-based environmental advocacy group on Thursday called on New York state to regulate its financial sector and ensure its policies are consistent with climate goals.
“This departure reveals the inadequacy of voluntary efforts and highlights the urgent need for state-level leadership and regulation,” said Vanessa Fajance, Executive Director of Environmental Advocates New York.・Mr. Turner said in a statement.
In November, Texas led 11 Republican states in filing a lawsuit against BlackRock, Vanguard, and State Street. Texas Attorney General Ken Paxton said in a press release that the states accused the fund management companies of “conspiring to artificially shrink” the coal market through anticompetitive practices.
The states argued that the companies had piled up huge stakes in coal producing companies and supported environmental initiatives that reduced coal production and drove up prices.
A Republican-led campaign against environmental, social and governance (ESG) goals, including diversity and inclusion policies, gained momentum last year.
For example, conservative activist Robbie Starbuck spearheaded a series of successful boycotts on X to pressure American companies to clean up their diversity, equity, and inclusion (DEI) practices.
Most recently, Nissan announced in December that it would scale back its diversity efforts after having “productive conversations” with Starbucks. Other large red-state employers, including Tractor Supply, John Deere, Harley-Davidson and Walmart, also suspended diversity efforts last year.
In a statement, Citi told the Post that it had decided to withdraw from the NZBA to focus on the Glasgow Net Zero Financial Alliance (GFANZ) as part of the group’s reorganization.
Bloomberg reported earlier this week that the Climate Alliance’s umbrella group, GFANZ, was adjusting how it works with industry-specific subgroups in the wake of the wave of bank exits, according to people familiar with the decision.
The report says businesses can now access GFANZ for guidance on tackling climate change, but are not required to pledge to the NZBA, which is in line with the Paris Agreement and net zero targets.
“In light of these changes and the progress we are making towards Citi’s own net zero goals, we have decided to withdraw from the Net Zero Banking Alliance,” Citi said in a statement. “We remain committed to achieving net zero and will continue to be transparent about our progress.”
Goldman Sachs, which announced its withdrawal from the climate change initiative in December, said it has made significant progress toward its net-zero goals and remains committed to sustainability.
“We have the ability to meet our goals and support our customers’ sustainability goals,” the bank told the Post in a statement. “Goldman Sachs is also highly focused on the increasing sustainability standards and reporting requirements imposed by regulators around the world.”
Wells Fargo declined to comment on its decision to leave the NZBA, and Bank of America did not respond to a request for comment.
Morgan Stanley has rolled back some of its previous environmental goals through 2024. In a report published in September, the bank omitted its previous pledge to eliminate or reduce 50 million tonnes of plastic waste by 2030. The bank also warned of “unintended consequences” of taking away loans from high-carbon customers too quickly. Plan for decarbonization.
