BMO, TD, National Bank Withdraw from Net-Zero Banking Alliance

The Bank of Montreal (BMO) has become the first Canadian bank to withdraw from the Net-Zero Banking Alliance (NZBA), a UN-sponsored initiative aimed at aligning banking practices with climate goals. BMO's decision comes amidst a trend of major banks, including several U.S. institutions, exiting the alliance due to increasing legal and regulatory pressures. Despite this withdrawal, BMO has reiterated its commitment to climate action and supporting clients in transitioning to a net-zero economy. The exit raises questions about the NZBA's effectiveness and future, particularly as other Canadian banks, including TD and National Bank, remain part of the initiative. BMO's CEO Darryl White has indicated that the bank will continue to pursue its climate strategy independently. This move follows comments from other banking leaders regarding the alliance's viability in the current regulatory landscape.