Morgan Stanley announced its withdrawal from the United Nations-backed Net-Zero Banking Alliance on 2 January 2025. The departure follows similar announcements from other large US banks in the preceding weeks.
With Morgan Stanley's exit, JPMorgan Chase was the only one of the six largest US banks still in the NZBA. The other remaining US members, such as Amalgamated Bank, Climate First Bank and Areti Bank, are far smaller, mission-driven lenders.
THE ALLIANCE
The NZBA, convened by the UN Environment Programme Finance Initiative and part of the Glasgow Financial Alliance for Net Zero, was set up in 2021 with the goal of aligning the lending and underwriting activities of member banks with net-zero greenhouse gas emission pathways by 2050. At its peak, the coalition counted more than 140 banks among its members, including the largest banks in the United States, Europe, and Asia-Pacific. Member banks committed to setting science-based intermediate targets and publishing transition plans.
Several US states have moved to restrict public pension fund business with financial firms that apply ESG criteria in ways deemed to conflict with fiduciary obligations.
MORGAN STANLEY'S STATEMENT
Morgan Stanley's brief statement said only that its commitment to net zero remained unchanged.