Citigroup, BofA join Wall Street lenders in leaving global climate-banking alliance

Citigroup and Bank of America (BofA) said they are leaving a global climate-banking group, becoming the latest Wall Street lenders to exit the coalition in the past month.

In a statement, Citigroup said while it remains committed to achieving net zero emissions, it’s exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it was also leaving NZBA, adding that it will continue to work with clients on reducing greenhouse gas emissions.

The banks’ departure from NZBA follows Goldman Sachs and Wells Fargo. The largest US financial institutions are under increasing pressure from Republican lawmakers to distance themselves from industry groups that support reducing carbon emissions.

NZBA is part of the Glasgow Financial Alliance for Net Zero, a UN-backed umbrella group of climate alliances. Citigroup and Bank of America are founding members of GFANZ. Earlier on Tuesday, GFANZ said it’s making changes that will “redouble its efforts to mobilise private capital” to support the energy transition.

Bank of America CEO Brian Moynihan and Citigroup CEO Jane Fraser are part of GFANZ’s Principals’ group, which sets priorities for GFANZ, according to the alliance’s website.

Citigroup said in its statement that the bank plans to support GFANZ during its new phase. The company added that it will “continue to work with our clients on their transitions to a low-carbon economy while helping ensure energy security, given the range of transition pathways that are being pursued across our global network”.