Morgan Stanley Becomes Latest Bank To Ditch Progressive Climate Change Agenda
Morgan Stanley became the latest U.S. bank to suspend its commitment to the Net-Zero Banking Alliance, a U.N. progressive climate program aimed at curbing all greenhouse gas emissions—including CO2—by 2050.
The bank in its Thursday announcement did not specify why it left the alliance, but Republican state attorneys general have increased pressure on top American lenders over their membership in the progressive group. GOP leaders argued that any banks that limit financial assistance to fossil fuel companies may be breaching antitrust rules.
The Net-Zero Banking Alliance is one of several industry alliances, backed by the United Nations, that pledge to "transition the operational and attributable greenhouse gas (GHG) emissions from their lending and investment portfolios to align with pathways to net-zero by 2050 or sooner." Republican attorneys general in 2023 also began investigating the U.N. Net-Zero Insurance Alliance, leading half of its members to bolt from the organization.
Morgan Stanley's departure makes it the fifth major U.S. lender to exit the banking alliance since President-elect Donald Trump won back the White House. Citigroup, Bank of America, Wells Fargo, and Goldman Sachs all left the agreement last month.
While it is leaving the alliance, Morgan Stanley said in a statement that it remains committed to supporting a transition to net-zero carbon emissions.
"We aim to contribute to real-economy decarbonization by providing our clients with the advice and capital required to transform business models and reduce carbon intensity," it said.
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