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By Armand SATCHIAN, Sustainable Investment Research Analyst, Credit Mutuel Asset Management
Up until a couple of months ago, the Net Zero Banking Alliance (NZBA) was gaining traction. Then came the nomination of Donald Trump which reshuffled the cards and no doubt partly justifies the withdrawal of several North American banks
Goldman Sachs withdrew from the alliance in December 2024, marking an end to a year which until then had been promising. The NZBA had continued to attract new members including Eurobank Holdings SA, Principality Building Society, SBAB Bank or Bank of Queensland, while certain banks began to withdraw from the Science Based Targets initiative
In its latest report, the NZBA's ability to stimulate engagement from the banking sector in 44 countries as well as its capacity to provide guidance to its members was apparent. By the end of May 2024 - 118 alliance banks had set decarbonization targets, 76 had published a transition plan, etc. Despite being sometimes criticized for its lack of clarity in regards to decarbonization targets requirements, the alliance has managed to secure the commitment of over 140 banks representing more than $56 trillion in assets. However, the NZBA now has to address a new challenge - the public disengagement of a number of stakeholders from sustainability initiatives.
This trend is not limited to the banking sector, but also extends to regulators such as the Federal Reserve (Fed), which withdrew from the Network fo...................... To view our full article Click here
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