Several major U.S. banks, including Bank of America, JPMorgan, Morgan Stanley, and Wells Fargo, have announced their withdrawal from the United Nations-led Net-Zero Banking Alliance (NZBA), according to Texas Attorney General Ken Paxton.
The Net-Zero Banking Alliance, established in April 2021, comprises financial institutions committed to aligning their lending, investment, and capital markets activities with the goal of achieving net-zero greenhouse gas emissions by 2050. Members pledge to transition their operational and attributable emissions to align with pathways toward net-zero by mid-century.
According to a report by the Texas Scorecard, Paxton initiated a review in October 2023 under Texas Senate Bill 13, which prohibits governmental contracts with companies that boycott oil and gas businesses. Membership in the NZBA raised concerns about these banks’ adherence to the law, leading to requests for detailed compliance letters.
The investigation included financial institutions like Barclays, Fidelity Investments, and TD Bank. Paxton warned that any future affiliations with NZBA or similar organizations would subject companies to the same scrutiny as those named.
“Any company submitting a standing letter to us in the future must inform us if it or any affiliate is a Net Zero Alliance Member. To the extent we learn that a company with a current standing letter, or its affiliate, is a Net Zero Alliance Member, the company will be treated similarly to the companies identified on the attached list,” stated Paxton.
The banks announced their decisions to leave the alliance over the span of several weeks:
- Wells Fargo exited on December 20.
- Bank of America followed on December 31.
- Morgan Stanley withdrew on January 2.
- JPMorgan announced its exit on January 7.
Goldman Sachs and Citigroup also left the alliance in December. In statements, Goldman Sachs highlighted its commitment to sustainability objectives, while Citigroup indicated it would continue working within the broader U.N. Glasgow Financial Alliance for Net Zero.
“More and more financial institutions are taking a major step in the right direction by leaving the radical and anti-energy Net-Zero Banking Alliance. The NZBA seeks to undermine our vital oil and gas industries, and membership could potentially prevent banks from being able to enter into contracts with Texas governmental entities,” stated the Attorney General. “I am glad that Bank of America, Morgan Stanley, and JPMorgan have terminated their NZBA membership.”
The departures significantly reduced U.S. participation in the NZBA. Currently, only three U.S. banks—Amalgamated Bank, Areti Bank, and Climate First Bank—remain members. Globally, the alliance retains 141 members from 44 countries, including international institutions like Deutsche Bank and HSBC.
The NZBA is part of the Glasgow Financial Alliance for Net Zero, a coalition of over 500 firms managing $130 trillion in assets, formed after the 2021 United Nations Climate Change Conference. The initiative aims to mobilize financial resources to combat climate change through coordinated action and investment strategies.
