Fear of “Anti-Woke” Attacks Leads to Collapse of Banking Climate Alliance

Fear of being targeted by “anti-woke” political attacks has led to the collapse of the Net Zero Banking Alliance (NZBA). The global coalition of banks, which aimed to achieve net-zero emissions by 2050, announced its immediate shutdown after a mass desertion of members, particularly from the United States.
The political climate turned hostile for the NZBA following the re-election of Donald Trump. His administration’s pro-fossil fuel stance gave rise to a powerful conservative movement that demonized corporate environmental, social, and governance (ESG) policies. Banks in the NZBA became a prime target for this backlash.
To avoid the wrath of right-wing politicians, the six largest US banks made a strategic retreat from the alliance. The coordinated exit of institutions like JPMorgan Chase and Goldman Sachs was a clear attempt to get out of the political firing line, but it also sounded the death knell for the international organization.
The departure of the American financial giants created an unstoppable domino effect. Lenders in Europe and Japan, seeing the alliance’s weakened state and the political risks involved, began to withdraw as well. The recent exits of UK-based HSBC and Barclays were the final confirmation that the fear of political retribution had successfully dismantled the coalition.
The shutdown has been met with a mix of disappointment and grim satisfaction. While some campaigners mourn the loss of a collaborative effort, critics argue it proves that voluntary corporate pledges are no match for determined political opposition. They contend that the only way to ensure the financial sector acts on climate is through government-enforced regulations that are immune to such political pressures.