JPMorgan Chase (JPM) said Tuesday its leaving the Net Zero Banking Alliance (NZBA), completing a mass exodus of Wall Street banks from a key climate group.
The biggest lender in the US said it would “continue to work independently to advance the interests of our firm, our shareholders and our clients and remain focused on pragmatic solutions to help further low-carbon technologies while advancing energy security.”
JPMorgan’s decision comes after similar exits in recent days and weeks by Morgan Stanley (MS), Citigroup (C), Bank of America (BAC), Wells Fargo (WFC), and Goldman Sachs (GS).
The NZBA was formed in 2021 as part of the Glasgow Financial Alliance for Net Zero, and a number of banks touted their initial membership in the alliance as financial-sector commitments to net zero goals became a focus for Wall Street.
Now such affiliations are coming under political attack as the GOP prepares to take over all of Washington in 2025 and ramps up a focus on “woke” investing.
In December, the House Judiciary Committee, led by Ohio Republican Jim Jordan, criticized financial environmental alliances, saying they have created what it called “a climate cartel.”
Another climate coalition formed with an aim to limit greenhouse gases globally, Climate Action 100+, has lost JPMorgan Chase (JPM), State Street (STT), and Pimco as members. BlackRock (BLK) transferred its membership from BlackRock Inc. to BlackRock International.
Last year Jordan called the Climate Action 100+ withdrawals “big wins for freedom and the American economy, and we hope more financial institutions follow suit in abandoning collusive ESG actions.”
Banks aren’t abandoning all climate groups.
Citigroup, for example, remains part of the Glasgow Financial Alliance for Net Zero, the wider climate initiative that houses NZBA and also includes coalitions of large asset managers and insurers. Citigroup CEO Jane Fraser and Bank of America CEO Brian Moynihan, along with BlackRock CEO Larry Fink, were founding principals.
Last week, that alliance shared a statement announcing changes to the organization that loosened the barriers to participation.
JPMorgan said Tuesday that its asset management division will remain part the affiliated Net Zero Asset Managers Initiative (NZAMI) even as the company leaves the climate group for banks.
“We will also continue to support the banking and investment needs of our clients who are engaged in energy transition and in decarbonizing different sectors of the economy,” the spokesperson added.