More than 40 Democratic lawmakers are demanding answers from 12 of the U.S.’s largest banks and asset managers after their mass exit from global climate alliances. Accusing them of bowing to political pressure, legislators are questioning whether these fi
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More than 40 congressional Democrats have demanded answers
from the nation’s largest financial institutions after their abrupt withdrawal
from key climate alliances.
In letters sent Thursday to the CEOs of 12 major banks and
asset managers, lawmakers expressed alarm over what they see as a retreat from
climate commitments under mounting political pressure and fossil fuel industry
influence.
The letters were signed by House Financial Services Committee
ranking member Maxine Waters of California, vice ranking member Sean Casten of
Illinois, and 39 other lawmakers.
Banks targeted include JPMorgan Chase, Bank of America, Citi,
Wells Fargo, Goldman Sachs, Morgan Stanley, State Street and BlackRock,
Northern Trust, Franklin Templeton, Invesco, and Pimco.
All twelve firms have exited high-profile sustainability
coalitions since January 2024, including the United Nations-backed Net-Zero
Banking Alliance and Net-Zero Asset Managers initiative, or have withdrawn from
other initiatives like Climate Action 100+.
The mass exodus from these alliances came as the political
environment shifted sharply following the 2024 U.S. presidential election and
intensified scrutiny from Republican lawmakers.
Goldman Sachs was the first to leave NZBA, triggering a
series of departures by other firms including Bank of America, Citi, and Wells
Fargo.
The trend continued into early 2025 with exits by Morgan
Stanley and JPMorgan. BlackRock, the world’s largest asset manager, also
withdrew from NZAM and transferred its Climate Action 100+ membership to a
smaller international entity.
After BlackRock’s departure, the NZAM group announced a pause
in operations. JPMorgan later attributed its own exit to that suspension.
In their letters, lawmakers pressed the financial
institutions to explain the rationale behind their exits and to clarify whether
they remain committed to previously stated net-zero targets.
The letters specifically requested information about any
communications with the Trump administration regarding the rollback of
environmental, social, and governance (ESG) practices. Lawmakers also asked
whether the firms plan to continue reporting on their climate progress and
maintain existing emissions-reduction targets.
