ESG
The Net Zero Banking Alliance was founded to unite banks in aligning their lending , investment and capital markets activities with net zero greenhouse gas emissions by 2050 .
Made up of some of the largest banks from around the world , the UN-convened group is designed to promote sustainable investing and prioritisation of net zero goals .
The start of 2025 , however , has seen a mass exodus of the largest American banks in the group .
CitiGroup , Goldman Sachs , Wells Fargo , Bank of America , Morgan Stanley and JP Morgan Chase all left the NZBA in December 2024 and January 2025 . While none of the organisations have cited specific reasons for leaving NZBA , they all left between Donald Trump ’ s election and inauguration . The 47th US President is publicly in favour of oil and gas investment and has referred to climate change as a “ hoax ”, which is raising concerns for how the US will impact global sustainability going forward .
“ Collaboration will be an essential part of achieving the goal of a net zero economy and the NZBA , with its industryled platform , has an important role to play in facilitating decarbonisation and effective capital allocation to the real economy ,” said David Solomon , Chairman and CEO of Goldman Sachs , when the organisation joined the NZBA in 2021 .
“ For us to succeed , the efforts of businesses and markets must be matched with sound public policy that balances current energy capabilities with support for new technologies and innovation .”
What is the Net Zero Banking Alliance ? The Net Zero Banking Alliance ( NZBA ) was founded on 21 April 2021 by 43 leading global financial institutions under the auspices of the United Nations Environment Programme Finance Initiative ( UNEP FI ).
The NZBA was created in response to the urgent need for climate action and to support the goals of the Paris Agreement . It aims to provide a standardised framework for banks to set credible , science-based net zero targets and strategies .
Founding members , which included Citibank and Bank of America , agreed to reconfigure their lending and investment portfolios ‘ to align with pathways to net zero by 2050 or sooner ’.
By joining the alliance , banks commit to :
• Aligning their lending and investment portfolios with net zero emissions by 2050
• Setting interim targets for 2030 or sooner
• Focusing on the most carbon-intensive sectors
• Annually reporting on progress and emissions
124 March 2025