- The NZBA has paused operations after major U.S. and European banks, including Citi, JP Morgan, Goldman Sachs, HSBC, Barclays, and UBS, withdrew.
- Only three smaller U.S. banks, including Amalgamated, remain committed, highlighting challenges in maintaining climate-aligned finance amid political and market pressures.
The Net-Zero Banking Alliance (NZBA), launched ahead of COP26 in Glasgow in 2021 to mobilise trillions for the low-carbon transition, pauses operations after major banks abandoned the initiative. Only three small U.S. banks now remain in the alliance.
The Geneva-based group announced the pause in late August, pending a vote this month on whether to continue as a membership-based alliance or operate as a framework initiative. Wall Street giants Citi, JP Morgan, Goldman Sachs, and Morgan Stanley resigned, citing political and market challenges. European banks HSBC, Barclays, and UBS also withdrew, showing that the alliance’s struggles extend beyond the U.S.
New York-based Amalgamated Bank plans to vote to retain NZBA guidelines while ending formal membership. The bank pioneered a net-zero-by-2050 target in 2018 and redirected lending toward clean energy and energy-efficient assets. “Amalgamated has driven momentum in climate action,” the bank said. “We pursue climate targets because they are the right thing and smart business.”
Chief Sustainability Officer Ivan Frishberg stressed that NZBA signals commitment to the market. “Investors and clients need clear guidance on business direction. Public standards show that commitment,” he said.
NZBA requires signatories to set sector-specific emissions targets across carbon-intensive sectors, including real estate, transport, power, and oil and gas. Amalgamated’s small, concentrated domestic operations have insulated it from political ESG backlash, a profile shared by the other remaining U.S. members, Areti Bank and Climate First Bank.
The alliance faces uncertainty as members vote on its future structure and role.