Morgan Stanley Withdraws from Net-Zero Alliance

Morgan Stanley has announced its withdrawal from the Net-Zero Banking Alliance (NZBA), becoming the fifth major bank to exit the coalition recently, following Citigroup, Bank of America, Goldman Sachs, and Wells Fargo. The bank maintains that its commitment to achieving net-zero emissions remains unchanged, emphasizing its focus on providing clients with necessary advice and capital for decarbonization. This departure comes amid increasing scrutiny from Republican politicians regarding climate-related commitments by financial institutions, with accusations of potential antitrust violations for limiting funding to fossil fuel companies. The NZBA, established by the United Nations in 2021, aims to align banks with the Paris Agreement's carbon reduction goals. Morgan Stanley, however, asserts it will continue to report on its progress toward its 2030 emissions targets despite leaving the alliance.