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Net-Zero Banking Alliance collapses following mass exodus of members

Net-Zero Banking Alliance will cease operation after a vote. The group had already lost a number of members due to allegations made by some U.S. legislators that its membership violated antitrust laws.

In 2021, the alliance was established as the main organisation of the banking sector to lead the global effort by the industry to reduce carbon emissions. In August, after the departure of many large banks, a new structure was proposed to replace the membership-based organization with a "framework project".

A spokesperson for the group stated that "as a consequence of this vote, NZBA will cease its operations immediately."

The resources developed over a period of several years will be available to banks who are seeking guidance on setting decarbonisation goals.

The spokesperson stated that "the Guidance for climate target setting for banks and supporting implementation resources is the most widely-used global banking framework focused on specifically setting decarbonisation goals and will remain publically available."

This decision is similar to one made by a climate group in the insurance industry for 2024. After facing similar political pressure, another climate-focused asset management organisation is also evaluating its next steps.

It's a bitter disappointment to see that the largest banks in the World voted to step back from their commitments around preventing the worst effects on global warming," said Jeanne Martin. She is co-Director for Corporate Engagement at the non-profit ShareAction.

Martin said that senior bankers must use their influence to increase standards of accountability for climate change if they want to see the transition to clean energy become a reality. (Reporting and editing by Virginia Furness, Jane Merriman, and Simon Jessop)

(source: Reuters)