In a statement, Citigroup said while it remains committed to achieving net zero emissions, it is exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it is also leaving NZBA, adding that it would continue to work with clients on reducing greenhouse gas emissions.
The banks’ departure from NZBA follows Goldman Sachs Group Inc and Wells Fargo & Co. The largest US financial institutions are under increasing pressure from Republican lawmakers to distance themselves from industry groups that support reducing carbon emissions.
NZBA is part of the Glasgow Financial Alliance for Net Zero (GFANZ), a UN-backed umbrella group of climate alliances. Citigroup and Bank of America are founding members of GFANZ. Earlier Tuesday, GFANZ said it is making changes that would “redouble its efforts to mobilize private capital” to support the energy transition.
Bank of America chief executive officer Brian Moynihanand and Citigroup chief executive officer Jane Fraser are part of GFANZ’s principals’ group, which sets priorities for GFANZ, according to the alliance’s Web site.
Citigroup said in its statement that the bank plans to support GFANZ during its new phase. The company added that it would “continue to work with our clients on their transitions to a low-carbon economy while helping ensure energy security, given the range of transition pathways that are being pursued across our global network.”
Citigroup has been the world’s No. 4 underwriter of green bonds since the start of the decade, trailing BNP Paribas SA, JPMorgan Chase & Co and Credit Agricole SA, according to data compiled by Bloomberg. Bank of America ranks eighth.
