The United Nations-backed Net-Zero Banking Alliance is shuttering its membership structure and moving toward operating as a climate guidance resource.
According to a press release, the NZBA Steering Group initiated a member vote in late August to decide on a proposed transition from a membership-based alliance to establishing its guidance as a new framework initiative, with the outcome shared at the end of September.
The steering group voted in favor of the new structure and, as a result, the NZBA will cease operations immediately, noted reporting from Responsible Investor.
Canadian Prime Minister Mark Carney helped launch the initiative in 2021 to fight climate change. At its height, the NZBA counted more than 140 banks globally among its membership; however, fierce debate has erupted over the merits of environmental, social, and governance investing — particularly within the U.S. Recent political discourse has led to Goldman Sachs, Wells Fargo, Citigroup, Bank of America, JPMorgan Chase and Morgan Stanley all exiting the alliance last December, with major Canadian banks, including The Canadian Imperial Bank of Commerce, the Royal Bank of Canada, the Toronto-Dominion Bank, Scotiabank, the Bank of Montreal, and the National Bank following suit in January 2025.
“The Steering Group believes this is the most appropriate model to continue supporting banks across the globe to remain resilient and accelerate the real economy transition in line with the Paris Agreement, as well as to continue engagement with the global banking industry to develop further guidance and tools needed to support them and their clients,” said the NZBA’s news release.
