Big Banks Quit Climate Change Groups Ahead of Trump’s Term

Published On Jan 20, 2025, 3:00 AM

In early 2025, major U.S. financial institutions, including the six largest banks, have withdrawn from climate-focused initiatives as Donald Trump begins his second presidency. This move follows increased political pressure and legal concerns surrounding environmental regulations. Top banks like JPMorgan and Goldman Sachs, along with asset management giant BlackRock, are distancing themselves from commitments to reduce greenhouse gas emissions, driven by a changing political landscape and fears of litigation.

Stock Forecasts

JPM

Negative

The withdrawal from climate initiatives signals a potential shift back to fossil fuels and away from green investments, which may attract investors seeking traditional profits. However, this could lead to long-term reputational damage and regulatory backlash as global environmental concerns persist. Investors might consider the potential volatility in these financial institutions' stocks due to changing public and market sentiments on sustainability.

BLK

Negative

Given the shift away from climate commitments, BlackRock’s future performance may be impacted negatively, as the asset manager could face pressure from investors concerned about sustainability and long-term risks associated with climate change.

Related News

Investors would be wise to pay closer attention to the World Economic Forum about to kick off in Davos, Switzerland.

JPM
GAP
NVDA
COIN

JPMorgan Chase, Goldman Sachs and Morgan Stanley easily topped estimates for the fourth quarter.

JPM
GS
MS

For the nation's biggest lenders a second Trump term can lead to profits no matter what the Fed does to interest rates.