"Net-Zero Banking Alliance mulls major overhaul amidst wave of exits", 22 February 2025

" The Net-Zero Banking Alliance – the world’s largest climate-finance group for banks – is weighing significant changes to its operating model following a spate of high-profile departures. Sources suggest the alliance is considering scrapping its current mandate, which requires members to align their portfolios with a target of limiting global warming to 1.5°C, in favour of a less stringent “well below 2°C” limit. Such a shift would mark a stark departure from the group’s founding principles.

A spokesperson for the alliance confirmed that a strategic review is underway, noting that the group was designed to be adaptable to changing conditions. However, insiders indicate that the ongoing deliberations remain far from final, with further discussions scheduled among the steering group later this month and a proposal expected to be submitted to remaining signatories in March.

The review comes after the alliance, which was established just four years ago and once represented over 40 per cent of global banking assets, has suffered a series of high-profile exits. Goldman Sachs was the first to withdraw shortly after the US presidential election, with JPMorgan Chase following suit in early January – a move that left the alliance devoid of major US banks. Canadian banks soon followed, effectively erasing North American representation.

In response to the defections, the NZBA has announced plans to explore a “next phase” to help member banks implement their individual climate strategies more independently. Options on the table include not only revising the 1.5°C target but also potentially moving away from using financed emissions as the sole metric for evaluating a bank’s climate performance..."