Banks Worldwide Join Forces to Combat Climate Change
Asian Banks Commit to Net-Zero Banking Alliance
Several large Asian banks have joined their European peers in offering support to the Net-Zero Banking Alliance (NZBA), following a wave of exits by Wall Street and Canadian lenders. Singapore and Malaysia-based banks, including DBS Group Holdings, Oversea-Chinese Banking Corp, Malayan Banking, and CIMB Group Holdings, have reaffirmed their commitment to the alliance.
CIMB and Maybank Vow to Continue Support
CIMB is "an active member" of the alliance and will "work with NZBA in this changing landscape," according to its chief sustainability officer, Luanne Sieh. Maybank said in a statement that it continues to "share the aspirations and purpose of NZBA." Both banks are members of the alliance’s steering group.
Global Divide in Climate-Finance Strategies
The comments follow an exodus by US banks that’s coincided with the arrival of Donald Trump in the White House. Canadian lenders were quick to follow, and last week, Australia’s Macquarie Group announced it was also leaving the coalition. Banks in Europe have so far said they remain committed to NZBA, setting the stage for a global divide in climate-finance strategies.
Net-Zero Banking Alliance Exploring New Phase
The alliance told remaining members last month that it’s exploring a "next phase" as it seeks to address questions around how it will operate with less of a global footprint. NZBA is planning to "investigate how it can continue to deliver value and better support member banks to individually and independently implement their climate strategies and manage the climate-related risks, opportunities, and objectives they face."
Membership and Commitment
NZBA has 135 members from more than 40 countries, according to its website. That includes Australia’s Westpac Banking, which is part of NZBA’s steering group, and ANZ Group Holdings, both of which are still committed to NZBA, according to people familiar with the matter.
Japanese Lenders Confirm Membership
Japanese lenders Mitsubishi UFJ Financial Group – another steering group member – Nomura Holdings, and Sumitomo Mitsui Financial Group also confirmed their membership, while declining to comment on future plans. A Mizuho Financial Group spokesperson said the bank is having internal discussions around the topic, but it’s still a member.
Investors Remain Committed
A similar coalition for investment firms, the Net Zero Asset Managers Initiative, said in January that it was suspending activities and launching a review after BlackRock departed. Several investors, including Nikko AM, have said they remain committed to their membership.
Conclusion
As the world grapples with the challenges of climate change, it’s heartening to see banks and investors coming together to support the Net-Zero Banking Alliance. With its global membership and commitment to sustainability, the alliance is well-positioned to make a positive impact on the environment.
FAQs
Q: What is the Net-Zero Banking Alliance?
A: The Net-Zero Banking Alliance is a coalition of banks committed to net-zero emissions by 2050.
Q: Who is a member of the Net-Zero Banking Alliance?
A: The alliance has 135 members from more than 40 countries, including DBS Group Holdings, Oversea-Chinese Banking Corp, Malayan Banking, and CIMB Group Holdings.
Q: What is the purpose of the Net-Zero Banking Alliance?
A: The alliance aims to support member banks in implementing their climate strategies and managing climate-related risks, opportunities, and objectives.
Q: Is the Net-Zero Banking Alliance still active?
A: Yes, the alliance is still active and is exploring a "next phase" to address questions around its global footprint.
