Background on the Banking Net-Zero Alliance (NZBA)
The Banking Net-Zero Alliance (NZBA) was established in 2021 with the goal of uniting global banks to combat climate change. The alliance initially boasted 150 members, including prominent financial institutions such as JPMorgan Chase, Morgan Stanley, Citigroup, Bank of America, Goldman Sachs, and Wells Fargo.
Members’ Withdrawal and Decision to Transform
However, in recent months, particularly following Donald Trump’s return to the White House, several key members withdrew from the NZBA. In response to this loss, the remaining members voted in favor of transforming the organization from a membership-based alliance to a guiding framework.
Immediate Cessation of Operations
As a result of this decision, the NZBA will cease its operations “immediately,” according to a spokesperson for the organization.
Continued Availability of Resources
Despite the disbandment, the Guide for Establishing Climate Targets for Banks and associated support resources will remain publicly accessible. These materials, which constitute the most widely-used global banking framework focused on setting decarbonization objectives, will continue to be utilized by banks worldwide for developing and implementing their own net-zero emission plans.
Key Questions and Answers
- What is the Banking Net-Zero Alliance (NZBA)? The NZBA was a global coalition of banks formed in 2021 to address climate change. It initially had 150 members, including major financial institutions.
- Why did the NZBA disband? The alliance disbanded following the withdrawal of key members, such as JPMorgan Chase, Morgan Stanley, Citigroup, Bank of America, Goldman Sachs, and Wells Fargo, after Donald Trump’s return to the White House.
- What happens to the NZBA’s resources? Although the alliance has disbanded, its Guide for Establishing Climate Targets for Banks and associated support resources will remain publicly available for banks to use in creating their own net-zero emission plans.
