LONDON (Reuters) – Investment Bank Morgan Stanley (NYSE:) said Thursday it has decided to leave the Net-Zero Banking alliance, becoming the latest U.S. bank to withdraw from the sector's largest global climate alliance.
Although the bank did not give a reason for its decision, major banks have come under pressure from some US Republican politicians over their membership, with accusations that any move to limit financing to fossil fuel companies could violate antitrust rules.
Despite leaving the NZBA, Morgan Stanley said in a statement that its commitment to helping the world transition to net zero carbon emissions “remains unchanged”.
“We aim to contribute to the decarbonization of the real economy by providing our clients with the advice and capital needed to transform business models and reduce carbon intensity,” she said.
The bank said it will also continue to report on its efforts to meet previously set 2030 targets to reduce emissions associated with its loan portfolio.
Morgan Stanley's decision follows similar moves in recent weeks Citigroup (NYSE:), Bank of America, Wells Fargo (NYSE:) and Goldman Sachs.
A US-based environmental advocacy group urged New York State on Thursday to regulate the financial sector and ensure its policies are consistent with climate goals.
“These exits expose the inadequacy of voluntary commitments and underscore the urgent need for leadership and regulation at the state level,” Vanessa Fagans-Turner, executive director of Environmental Advocates NY, said in a statement.
