LONDON: Investment bank Morgan Stanley announced Thursday that it has decided to leave the Net-Zero Banking Alliance, becoming the latest US lender to leave the sector’s main global climate coalition.
Although the bank gave no reason for its decision, the biggest banks have faced pressure from some US Republican politicians over joining, accusing them that any measures to limit financing to fossil fuel companies could violate antitrust rules.
Despite its departure from the NZBA, Morgan Stanley said in a statement that its commitment to helping the global transition to net zero carbon emissions “remains unchanged”.
“We aim to contribute to the decarbonization of the real economy by providing our clients with the advice and capital needed to transform business models and reduce carbon intensity,” it says.
The bank said it would also continue to report on its efforts towards previously set 2030 targets to reduce emissions from its loan portfolio.
Morgan Stanley’s move follows similar moves in recent weeks by Citigroup, opens a new tab, Bank of America, opens a new tab, Wells Fargo, opens a new tab and Goldman Sachs, opens a new tab.
A U.S.-based environmental advocacy group on Thursday urged New York state to regulate the financial sector and ensure its policies align with climate goals.
“These departures reveal the inadequacy of voluntary commitments and underscore the urgent need for state-level leadership and regulation,” Vanessa Fajans-Turner, executive director of Environmental Advocates NY, said in a statement .