Goldman Sachs has left one of the top international green energy banking alliances without any explanation, a signal of diminishing interest on Wall Street in climate activism amid significant pushback from Republicans.
The U.S. financial firm confirmed its departure from the United Nations-backed Net-Zero Banking Alliance on Friday, according to Reuters.
The coalition is made up of more than 140 banks and financial firms across the globe, including eight others from the United States, such as Wells Fargo and Morgan Stanley.
It has long faced the ire of Republican lawmakers and politicians, who have accused the group of antitrust violations. In 2022, 19 Republican attorneys general announced they were investigating NZBA, saying its actions were hurting their states.
At the time, Sen. Eric Schmitt (R-MO), then-Missouri attorney general, said the alliance was set up “to starve companies engaged in fossil fuel-related activities of credit on nation and international markets.”
“Missouri farmers, oil leasing companies, and other businesses that are vital to Missouri’s and America’s economy will be unable to get a loan because of this alliance,” Schmitt said around the launch of the inquiry, adding, “These banks are accountable to American laws — we don’t let international bodies set the standards for our businesses.”
NZBA was launched in April 2021 in an effort to bring global banks and institutions on board with setting climate targets in alignment with the Paris Agreement. As a part of the coalition, the banks agreed to commit to an energy transition, putting them on a path to be net-zero by 2050 or sooner, meaning that they will remove as much carbon pollution from the atmosphere as they emit. They have also committed to setting 2030 targets.
Goldman Sachs did not explain why it would be leaving the coalition but said in a statement it would still be focusing on its sustainability goals in the future.
“We have the capabilities to achieve our goals and to support the sustainability objectives of our clients,” the bank said, according to the outlet. “Goldman Sachs is also very focused on the increasingly elevated sustainability standards and reporting requirements imposed by regulators around the world.”
Goldman Sachs insisted it has made “significant progress” on its net-zero goals in recent years and plans to expand to additional sectors in those efforts in just a few short months.
“Our priorities remain to help our clients achieve their sustainability goals and to measure and report on our progress,” the bank said.
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Goldman Sachs’s departure from the U.N.-backed coalition comes as concerns have risen since the November presidential election about U.S. involvement in tackling climate change on the international stage.
During his previous administration, President-elect Donald Trump withdrew from the Paris Agreement and is expected to do the same once he takes office again. Trump is also set to issue a number of rollbacks of major climate rules and measures put in place by his predecessor, paving the way for a reemphasis on higher-emitting energy sources, such as oil and gas.