US Banks Withdraw from Net-Zero Finance Alliance Amid Escalating ESG Scrutiny
In a significant move, six major US banks, including JP Morgan, Goldman Sachs, and Citigroup, have announced their withdrawal from the Net Zero Banking Alliance, citing mounting Environmental, Social, and Governance (ESG) pressure. This decision highlights the challenges banks face in balancing their financial goals with growing demands for sustainable finance and climate action. As the banking sector grapples with ESG concerns, the exit of these prominent institutions from the alliance is likely to have far-reaching implications for the future of net-zero financing and climate-related financial disclosures. With ESG investing and sustainable banking becoming increasingly important, the move is expected to impact the banks' reputation and investor confidence. Key players such as Morgan Stanley, Wells Fargo, and Bank of America have also joined the exodus, sparking intense debate about the role of banks in addressing climate change.
