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illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Streeet Journal or enjoy below:
🗞️ Driving the news: Major U.S. banks, including Morgan Stanley, Citigroup, and Bank of America, have exited the United Nations-backed Net-Zero Banking Alliance, a coalition formed to push businesses toward carbon neutrality
• These moves follow similar withdrawals by Wells Fargo and Goldman Sachs amid increasing political backlash
• JPMorgan Chase, the only remaining large U.S. bank in the alliance, is reportedly considering leaving as well
🔭 The context: The Net-Zero Banking Alliance was launched during the pandemic as part of global efforts to combat climate change by aligning bank portfolios with net-zero carbon goals by 2050
• Republican lawmakers have criticized the coalition, labeling its policies as coercive and detrimental to economic growth
• The exits highlight the growing divide between environmental ambitions and political pressure in the U.S. financial sector
🌍 Why it matters for the planet: The retreat from net-zero commitments by key financial players undermines progress toward decarbonizing global economies
• These banks play a pivotal role in funding industries that significantly impact carbon emissions, and their withdrawal signals a shift in priorities away from sustainability
• It raises concerns over achieving international climate targets
⏭️ What's next: The departures may lead to a reevaluation of how financial institutions approach climate-related goals amidst political scrutiny
• Observers anticipate further tensions between environmental advocates and policymakers
• JPMorgan Chase’s decision on remaining in the coalition could set a broader trend for other institutions
💬 One quote: “The alliance was meant to drive meaningful change, but it’s become a lightning rod for political controversy,” - a senior banking executive familiar with the matter
📈 One stat: As of September 2024, the Net-Zero Banking Alliance comprised 144 member banks from 44 countries, collectively representing approximately 41% of global banking assets
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