NEW YORK – Goldman Sachs has announced its withdrawal from the Net-Zero Banking Alliance (NZBA), a coalition aimed at aligning banking practices with global climate goals. The decision comes amid increasing pressure from Republican politicians who have raised concerns about potential antitrust violations associated with such alliances.
While Goldman Sachs did not explicitly cite the political pressure as the reason for its departure, the bank emphasized its commitment to sustainability and its focus on regulatory requirements. The bank stated that it possesses the necessary capabilities to achieve its sustainability goals and support client objectives.
Despite leaving the NZBA, Goldman Sachs reaffirmed its dedication to net-zero emissions by 2050 and its plans to expand its sustainability efforts to additional sectors. The bank remains committed to helping clients achieve their sustainability goals and will continue to measure and report on its progress.
The NZBA has yet to comment on Goldman Sachs' departure.
In 2019, Goldman Sachs set a target of delivering $750 billion in sustainable financing by 2030 and has already achieved approximately 75% of this goal. CEO David Solomon reiterated the bank's commitment to the energy sector, emphasizing the need to balance financing and advising traditional energy clients with investments in decarbonization technologies.
The bank's decision to leave the NZBA follows a similar move by a number of US investors, including Goldman Sachs Asset Management, from a global coalition focused on climate-related corporate actions. This trend underscores the complex and evolving landscape of climate-related finance and the challenges faced by financial institutions in balancing regulatory pressures, investor expectations, and political considerations.
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