Morgan Stanley on Thursday announced its withdrawal from a coalition of banks aiming to achieve net-zero emissions through lending and investment, the fifth group in recent weeks to do so.
“Morgan Stanley has decided to withdraw from the Net Zero Banking Alliance. Morgan Stanley’s commitment to net zero remains unchanged. “We aim to contribute to the decarbonization of the real economy by providing our clients with advice and financing,” a spokesperson for the bank said in a statement. “We will continue to report on our progress towards our 2030 interim funded emissions target.”
Morgan Stanley is the latest major bank to leave the agreement, following the withdrawals of Citigroup, Bank of America, Goldman Sachs and Wells Fargo.
The bank did not give a reason for leaving the alliance created by the United Nations in 2021 through the Environmental Planning and Finance Initiative. But it comes just weeks before the Republican trifecta takes office in Washington, where efforts on the environment and sustainable governance are underway. It's probably in its crosshairs.
In June, Republicans on the House Judiciary Committee accused large investment firms of “colluding” with climate change activist groups. A few weeks ago, Texas Attorney General Ken Paxton (R) led 11 Republican state attorneys general to challenge asset managers BlackRock, Vanguard, and State Street to “manipulate the coal market” through their industry holdings. He was accused of conspiring to downsize the government. BlackRock and State Street called the allegations “unfounded.”
But as early as February last year, big banks and asset managers were signaling a retreat from tackling climate change. That same month, Bank of America withdrew its pledge not to fund new coal mining, shipping or combustion infrastructure, while JPMorgan Chase's investment arm received a pledge from another investment coalition, Climate Action 100+. I left.
