· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on ESG Today or enjoy below:
🗞️ Driving the news: Goldman Sachs has exited the Net-Zero Banking Alliance (NZBA), becoming the first major departure from the UN-backed coalition of 145 banks
• While reaffirming its commitment to align financing with net-zero goals by 2050, Goldman cited its ability to meet regulatory sustainability standards independently
• The decision follows increased political pressure on climate-focused alliances
🔭 The context: The NZBA, part of the Glasgow Financial Alliance for Net Zero (GFANZ), requires members to align financing activities with net-zero pathways and set 2030 targets for high-emission sectors
• Goldman’s departure comes amid broader withdrawals from GFANZ-aligned groups, pressured by anti-ESG campaigns, particularly in the U.S.
• Goldman set its net-zero goals before joining NZBA in 2021, maintaining progress independently of the coalition
🌍 Why it matters for the planet: High-profile exits from climate alliances could weaken collective efforts to transition the financial sector toward sustainability
• Goldman’s continued commitment to its net-zero goals mitigates some concerns, but the move highlights the challenges of navigating political and regulatory pressures while addressing climate change
• Collaborative efforts like the NZBA are crucial for scaling global financial climate action
⏭️ What's next: Goldman plans to expand sector-specific financed emissions targets in the coming months, with a focus on sustainability support for clients
• The NZBA will face increased scrutiny over retaining members amid intensifying political opposition Broader implications for global net-zero coalitions and financial sector engagement will likely unfold
💬 One quote: “We have the capabilities to achieve our goals and to support the sustainability objectives of our clients,” - a Goldman Sachs spokesperson
📈 One stat: The NZBA represents 145 banks across 44 countries, managing assets of approximately $74 trillion
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