JPMorgan Quits Net-Zero Banking Alliance, Following Citi, BofA

JPMorgan Chase & Co. is leaving a major climate finance group, becoming the last of Wall Street's biggest banks to walk away.

The largest bank in the US has decided to quit the Net-Zero Banking Alliance, it said on Tuesday.

JPMorgan will “continue to work independently to advance the interests of our firm, our shareholders and our clients and remain focused on pragmatic solutions to help further low-carbon technologies while advancing energy security,” according to the emailed statement. “We will also continue to support the banking and investment needs of our clients who are engaged in energy transition and in decarbonising different sectors of the economy.”

JPMorgan's exit marks the latest blow to NZBA. In December alone, the alliance parted ways with Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc and Wells Fargo & Co. So far in January, Morgan Stanley has said it's quitting the group. Departures to date have been concentrated in the US, against a backdrop of intensified attacks by the Republican Party on what it's sought to characterise as “woke” capitalism.

With JPMorgan's departure, only three US lenders — Amalgamated Bank, Areti Bank and Climate First Bank — remain as members of NZBA, compared with about 80 banks in Europe, according to the alliance's website.

Banks that have left NZBA say they remain committed to helping clients transition to a low-carbon future. 

The defections that have hit NZBA follow similar exits across climate alliances in other corners of the finance industry. In 2023, a sub group for insurers saw a mass exodus amid litigation threats. And in 2022, an equivalent group for asset managers parted ways with Vanguard Group Inc., the world's second-largest money manager. 

JPMorgan is a leading financier of both high- and low-carbon energy. In 2024, the firm was the top-ranked banker for oil, gas and coal deals, as well as a top-five provider of green bonds and loans, according to data compiled by Bloomberg.

In the bank's latest climate report, which was put out shortly after the US election, Chief Executive Officer Jamie Dimon said JPMorgan seeks “to enable inclusive, sustainable economic growth because it's good for business.”

“As society seeks to avoid the worst impacts of climate change, it also requires affordable and secure energy to thrive. Scaling zero-carbon energy is a critical path forward,” he also said. “But it will take time and it critically must include technological innovation and public policy done well — in addition to financial support — to make it possible to meet the growing energy demand.”