· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Australian Financial Review or enjoy below:
🗞️ Driving the news: Macquarie Group has announced its departure from the Net Zero Banking Alliance (NZBA), becoming the first major Australian financial institution to exit the UN-backed climate initiative
• This move aligns Macquarie with several major U.S. banks, including JPMorgan Chase, Citigroup, and Bank of America, which have also recently withdrawn from the NZBA
🔭 The context: The NZBA, established in 2021, aims to guide financial institutions toward achieving net-zero greenhouse gas emissions by 2050
• Macquarie joined the alliance in 2021 but has now chosen to focus on updating its decarbonization plans independently, citing the establishment of foundational frameworks as a basis for its exit
🌍 Why it matters for the planet: The departure of prominent financial institutions from the NZBA raises concerns about the collective commitment of the banking sector to address climate change
• Such exits may undermine global efforts to standardize and enforce strategies aimed at reducing carbon emissions within the financial industry
⏭️ What's next: Macquarie has stated it will provide an update on its climate activities in its May 2025 annual report
• The broader trend of financial institutions reassessing their participation in climate alliances may prompt a reevaluation of how these coalitions operate and influence environmental policies
💬 One quote: “The Net Zero Banking Alliance (NZBA) helped develop global frameworks and assisted member banks as they established their initial decarbonisation plans. With those building blocks now in place, like many peers Macquarie will no longer be a member of NZBA, as we focus on updating and delivering our plans and reporting in line with regulatory requirements.” — Macquarie Group statement
📈 One stat: In 2024, Macquarie reported that 34% of its net profit originated from the Americas, highlighting its substantial business presence in the U.S.
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