Citigroup and Bank of America Exit Global Climate-Banking Group
Citigroup and Bank of America have announced their departure from the Net-Zero Banking Alliance (NZBA), a global climate-banking group. This move comes as the largest US financial institutions face increasing pressure from Republican lawmakers to distance themselves from industry groups that support reducing carbon emissions.
Reasons for Departure
Citigroup stated that while it remains committed to achieving net zero emissions, it is exiting NZBA. Bank of America, on the other hand, said it will continue to work with clients on reducing greenhouse gas emissions, but will no longer be a part of NZBA.
Background
NZBA is part of the Glasgow Financial Alliance for Net Zero (GFANZ), a United Nations-backed umbrella group of net zero-focused financial sector coalitions. Citigroup and Bank of America are founding members of GFANZ, and their CEOs are part of the alliance’s Principals’ group, which sets priorities for GFANZ.
Impact
The departure of Citigroup and Bank of America from NZBA follows the exit of Goldman Sachs and Wells Fargo. The move is seen as a significant blow to the alliance, which aims to mobilize private capital to support the energy transition.
Future Plans
Citigroup plans to support GFANZ during its new phase and will continue to work with clients on their transitions to a low-carbon economy. The bank will also help ensure energy security, given the range of transition pathways being pursued across its global network.
Rankings
Citigroup ranks as the world’s fourth underwriter of green bonds since the start of the decade, while Bank of America ranks eighth, according to data compiled by Bloomberg.
Conclusion
The departure of Citigroup and Bank of America from NZBA highlights the increasing pressure on financial institutions to distance themselves from climate-related initiatives. While the banks’ commitment to achieving net zero emissions remains unchanged, their exit from the alliance may have significant implications for the global climate-banking group.
FAQs
Q: Why did Citigroup and Bank of America exit NZBA?
A: Citigroup stated that it remains committed to achieving net zero emissions, but is exiting NZBA. Bank of America will continue to work with clients on reducing greenhouse gas emissions, but will no longer be a part of NZBA.
Q: What is the impact of their departure on NZBA?
A: The departure of Citigroup and Bank of America is seen as a significant blow to the alliance, which aims to mobilize private capital to support the energy transition.
Q: Will Citigroup and Bank of America continue to support climate-related initiatives?
A: Yes, Citigroup plans to support GFANZ during its new phase and will continue to work with clients on their transitions to a low-carbon economy.
Q: How do Citigroup and Bank of America rank in terms of green bonds?
A: Citigroup ranks as the world’s fourth underwriter of green bonds since the start of the decade, while Bank of America ranks eighth, according to data compiled by Bloomberg.
