Citigroup and Bank of America have announced their departure from the Net-Zero Banking Alliance (NZBA), a key coalition under the UN-backed Glasgow Financial Alliance for Net Zero (GFANZ).
According to ESG Today, this move follows the earlier exits of Goldman Sachs and Wells Fargo, signalling a growing trend among major banks distancing themselves from formal climate commitments due to increasing political scrutiny, especially from Republican lawmakers in the U.S.
Launched in 2021, the NZBA aimed to guide banks worldwide in aligning their financing operations with pathways to net zero greenhouse gas emissions by 2050. This includes setting ambitious 2030 targets for financed emissions, focusing primarily on high-emission sectors. Despite these high ideals, the alliance, along with other GFANZ coalitions, has faced escalating pressures, leading to high-profile withdrawals and even the disbandment of the Net Zero Insurance Alliance in 2024.
Citi reaffirmed its commitment to a net zero future despite its NZBA exit, emphasizing its ongoing efforts to reduce financed emissions in critical sectors such as energy and power. “In light of this shift, and Citi’s progress towards its own net zero goals, we have decided to leave the Net Zero Banking Alliance and focus our attention on supporting GFANZ during this new phase,” Citi stated.
Similarly, Bank of America has maintained its dedication to achieving net zero emissions by 2050, updating its targets for sectors like Iron & Steel and Maritime Shipping. Both banks remain active in the GFANZ Principals Group, which continues to shape the strategic direction and monitor the progress of GFANZ’s initiatives.
This backdrop of withdrawals underscores the complex interplay between global sustainability efforts and regional political dynamics, which may influence future commitments by financial institutions to international climate goals.
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