Key Impact Points:
- JPMorgan is the latest of six major U.S. banks to exit the U.N.-backed Net Zero Banking Alliance (NZBA) within the past month.
- The bank will continue collaborating with the Glasgow Financial Alliance for Net Zero (GFANZ), focusing on low-carbon and energy-secure solutions.
- The departures follow Republican-led probes into the banks’ climate alliance memberships, citing potential antitrust and consumer protection concerns.
JPMorgan Joins Growing U.S. Bank Exodus from NZBA
JPMorgan Chase confirmed its departure from the United Nations-backed Net Zero Banking Alliance (NZBA), becoming the latest in a wave of U.S. banks exiting the climate coalition. This move follows the recent withdrawals of Bank of America, Citigroup, Morgan Stanley, Goldman Sachs, and Wells Fargo.
A JPMorgan spokesperson noted the bank’s continued commitment to addressing climate and energy challenges:
“We will continue to work independently to advance the interests of our Firm, our shareholders and our clients and remain focused on pragmatic solutions to help further low-carbon technologies while advancing energy security.”
Focus Shifts to GFANZ
Despite leaving NZBA, JPMorgan remains engaged with the Glasgow Financial Alliance for Net Zero (GFANZ), a broader U.N.-backed coalition of financial institutions. The bank aims to contribute to solutions that drive both decarbonization and energy security. The spokesperson emphasized:
“We will also continue to support the banking and investment needs of our clients who are engaged in energy transition and in decarbonizing different sectors of the economy.”
GFANZ, under a recent restructuring, is now prioritizing public-private partnerships to mobilize climate finance. Mary Schapiro, GFANZ’s secretariat, stated:
“The alliance will restructure and turn its attention to ‘mobilizing [climate] finance through public-private partnerships.’”
Political Scrutiny and Market Pressures
The exodus from NZBA comes amidst political scrutiny. Republican lawmakers have probed these banks over potential antitrust and consumer protection law violations related to their climate alliance memberships.
Of the original NZBA members, only three U.S. banks — Amalgamated Bank, Climate First Bank, and Areti Bank — remain in the alliance. These banks represent significantly smaller asset sizes compared to their larger counterparts.
As GFANZ shifts its focus toward actionable climate finance strategies, leaders from major financial institutions, including Citi CEO Jane Fraser and BofA CEO Brian Moynihan, will guide its efforts through a newly formed Principals Group.
JPMorgan’s exit underscores the challenges financial institutions face in balancing environmental commitments with political and market pressures. The bank’s continued collaboration with GFANZ signals its intent to remain a key player in advancing low-carbon initiatives.
