Wall Street banks exit climate alliance as Trump 2.0 nears
Published On Jan 4, 2025, 9:30 AM
Several major U.S. banks like Morgan Stanley, Citigroup, Bank of America, Wells Fargo, and Goldman Sachs are withdrawing from the UN-backed Net Zero Banking Alliance. This shift comes as a new Trump administration is set to take office, with political pressures against climate-focused financial initiatives. Although these banks assert their commitment to climate goals remains unchanged, their exit indicates a response to increased scrutiny and potential backlash against 'woke' investing. The overall political climate may influence financial institutions' future commitments to environmental measures.
Stock Forecasts
JPM
Negative
The departure of major banks from environmental alliances may lead to increased skepticism about financial firms' commitments to ESG goals. This could affect investor sentiment towards companies heavily involved in sustainable finance or renewable energy sectors, particularly those reliant on institutional banking relationships.
GS
Positive
Conversely, institutions that continue to pursue aggressive climate initiatives may experience increased support from environmentally conscious investors, suggesting a potential positive outlook for them. Firms like JPMorgan, which remains with the NZBA, could benefit from continued public and investor backing.
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