LONDON (Reuters) – Investment bank Morgan Stanley (NYSE:) said Thursday it had decided to leave the Net-Zero Banking Alliance, becoming the latest U.S. lender to withdraw from the industry’s premier global climate coalition.
Although the bank did not give a reason for its decision, top banks are under pressure from some US Republican politicians over their membership, with accusations that any attempt to limit financing to fossil fuel companies could violate antitrust rules.
Despite leaving the NZBA, Morgan Stanley said in a statement that its commitment to helping the world’s transition to net zero carbon emissions “remains unchanged.”
“We want to contribute to the decarbonization of the real economy by providing our clients with the advice and capital needed to transform business models and reduce carbon intensity,” the report said.
The bank said it would also continue to report on its efforts toward previously set 2030 targets to reduce emissions associated with its loan portfolio.
Morgan Stanley’s decision follows similar steps in recent weeks Citi Group (NYSE:), Bank of America, Wells Fargo (NYSE:) and Goldman Sachs.
A US-based environmental advocacy group on Thursday urged New York state to regulate the financial sector and ensure its policies are in line with climate goals.
“These exits reveal the inadequacy of voluntary commitments and underscore the urgent need for leadership and regulation at the state level,” Vanessa Fajans-Turner, executive director of Environmental Advocates NY, said in a statement.
