Leading Canadian banks quit global climate coalition ahead of Trump’s inauguration Reuters
From Nivedita Balu
TORONTO (Reuters) – Canada’s four biggest lenders said on Friday they were pulling out of the banking sector’s global climate coalition, joining six big U.S. banks.
The departures from the Net-Zero Banking Alliance began with Goldman Sachs’ announcement on Dec. 6 and come ahead of Donald Trump’s return to the White House next week. Trump has been critical of governments’ efforts to prescribe climate change policy.
The four Canadian banks are TD Bank, Bank of Montreal, National Bank of Canada (OTC:) and Canadian Imperial Bank of Commerce (NYSE:) ( CIBC (TSX:)).
Other major US banks that have pulled out are Wells Fargo (NYSE:), Citi, Bank of America, Morgan Stanley (NYSE: ) and JPMorgan.
The Net-Zero Banking Alliance, a UN-sponsored initiative launched by former Bank of Canada Governor Mark Carney, was launched in 2021 to encourage financial institutions to limit the effects of climate change and push towards net zero emissions.
Canadian banks said in separate statements that they are equipped to work outside the alliance and develop their climate strategies.
“The NZBA was established at a time when global industry was increasing efforts to take action on climate and has played a valuable role in driving these efforts and building momentum,” CIBC said in a statement.
“As this space has evolved and matured, and having made significant progress alongside our clients in these areas, we are now well placed to continue this work outside the formal NZBA structure,” it said.
Canadian banks have faced increasing pressure to address climate-related risks arising from their financing activities in recent years. The country’s banking regulator has also introduced guidelines for financial institutions to manage climate-related risks.
Separately, the US central bank announced it was withdrawing from a global body of central banks and regulators dedicated to exploring how to manage climate risk in the financial system.
