NZBA Ceases Operations as Major Banks Exit ESG Alliance
The Net Zero Banking Alliance (NZBA) is set to cease operations after a wave of major banks, including Wall Street giants and London's City banks, exited the alliance. The decision comes amidst a shift in political sentiment towards ESG commitments.
The exodus began following the election of President Donald Trump on an anti-ESG platform in November 2024. Wall Street banks, such as Goldman Sachs, led the retreat, with all major players, including JP Morgan, leaving by January 2025. Canadian banks, like Royal Bank of Canada and Toronto-Dominion Bank, also followed suit.
London's City banks joined the exodus in 2025, with HSBC and Barclays pulling out. After HSBC's departure from the alliance in July 20XX, Bank of America, Citibank, and Morgan Stanley joined the NZBA. However, they too left by the end of 2024. Standard Chartered's CEO criticized these moves, stating that peers were abandoning ESG commitments.
The NZBA will now transition from a member-based alliance to a framework providing guidance, as it ceases operations due to the departure of its membership. The shift in banking priorities towards the environment, social, and governance (ESG) policies has led to a significant change in the alliance's structure and future.
