Morgan Stanley (NYSE:MS) has become the latest major financial institution to depart the Net-Zero Banking Alliance, a coalition focused on achieving net zero emissions in the banking sector by 2050.
This follows the departure of Citigroup Inc (NYSE:C), Bank of America Corp (NYSE:BAC), Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) and Wells Fargo & Co (NYSE:WFC, ETR:NWT) from the alliance over recent weeks.
The withdrawals come before President-elect Donald Trump takes office later this month amid political pressure from Republican lawmakers and states, who are concerned that climate-focused initiatives like the Net-Zero Banking Alliance may violate antitrust laws, disadvantage traditional energy industries, and impose aggressive ESG goals on US businesses.
Morgan Stanley (NYSE:MS) did not disclose why it has chosen to leave the alliance but said its commitment to net zero “remains unchanged.”
“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,” a Morgan Stanley spokesperson said in a statement.
“We will continue to report on our progress as we work towards our 2030 interim financed emissions targets.”