Regardless of Net-Zero Alliance Membership, Major US Banks Must Uphold Their Climate Action Commitments

NEW YORK — Today, JPMorgan Chase became the 6th major US bank to leave the Net Zero Banking Alliance (NZBA), a voluntary initiative launched in 2021 that has hundreds of member banks across dozens of countries. The move follows announcements in recent weeks by the other major US banks — Morgan Stanley, Citi, Bank of America, Wells Fargo, and Goldman Sachs — that those banks would also be leaving the NZBA. 

Despite the exodus, all six major US banks have their own net-zero commitments that pre-date or are independent from their membership in the NZBA, which have not changed as a result of the banks’ exit. An October 2024 report by the Sierra Club, Leaders or Laggards: Analyzing major US banks’ net-zero commitments, examined the banks’ climate targets, policies, and disclosures, and the ways in which they are, or are not, aligned with their goals to reach net-zero emissions by 2050.

In response to the news, Ben Cushing, campaign director for the Sierra Club’s Fossil-Free Finance campaign, issued the following statement:

“Regardless of shifting political environments, the fact remains that the only credible way for financial institutions to meet their long-standing net-zero commitments is to rapidly phase out fossil fuel financing and scale up funding for clean energy solutions. While voluntary industry alliances like the NZBA play an important role, membership has never been the true measure of a company’s climate progress. What matters most is the strength of a company’s policies and targets, and transparent adherence to them. 

If Wall Street banks acquiesce further to climate denier politicians and fail to follow through on their climate commitments, it will isolate the US on the global stage, and the enormous costs will fall upon our global economy, financial markets, and vulnerable communities. Ultimately, it’s up to banks’ regulators, shareholders, and clients — including state and local leaders — to hold them accountable.”

Also in January, the Glasgow Financial Alliance for Net Zero (GFANZ) — which had previously served as an umbrella group for NZBA, the Net Zero Asset Managers initiative (NZAM), the Net Zero Asset Owners Alliance (NZAOA), and other financial sector alliances — announced it would restructure as a stand-alone forum for financial institutions. While the NZBA and other sectoral initiatives will reportedly maintain their own existing guidelines, they are no longer affiliated with GFANZ, though some financial institution executives will continue to serve in GFANZ advisory roles.