Goldman Sachs has announced its withdrawal from the Net-Zero Banking Alliance (NZBA), a coalition focused on aligning bank lending and investment activities with global climate goals. The US investment bank’s departure makes it the most prominent member to exit the group.
The decision comes against a backdrop of increasing pressure from Republican politicians who argue that NZBA membership could potentially violate antitrust laws. While Goldman Sachs did not provide a specific reason for its exit, the bank emphasised its focus on future strategies and the growing influence of regulators pushing for mandatory sustainability efforts.
“We have the capabilities to achieve our goals and to support the sustainability objectives of our clients. Goldman Sachs is also very focused on the increasingly elevated sustainability standards and reporting requirements imposed by regulators around the world,” the bank said in a statement.
Uncertainty remains around US rules for climate-related corporate disclosures under the administration of President-elect Donald Trump. However, many large US firms, including Goldman Sachs, will still be required to adhere to European Union disclosure regulations.
Participation in the voluntary NZBA involves a commitment to align banking activities with the global objective of achieving net-zero emissions by 2050, setting interim targets, and publishing annual progress reports. Goldman Sachs has confirmed that it will continue to uphold these practices despite its exit.
“We have made significant progress in recent years on the firm’s net zero goals and we look forward to making further progress, including by expanding to additional sectors in the coming months,” the bank said. “Our priorities remain to help our clients achieve their sustainability goals and to measure and report on our progress.”
Goldman first committed to $750 billion in sustainable financing by 2030 in 2019 and revealed in its 2023 sustainability report that it has achieved approximately 75% of this target.
In the same report, CEO David Solomon reiterated the bank’s dual commitment to supporting the energy sector and investing in decarbonisation technologies. “We need to do both. It’s not an or, it’s an and,” Solomon wrote. Goldman also reaffirmed its interim carbon reduction targets for sectors such as energy, power, and automotive while maintaining its overall net-zero financing goals by 2050.
Earlier this year, several US-based investors, including Goldman Sachs’ asset management division, exited another global climate coalition, citing similar pressures. BlackRock and other major investors are also facing lawsuits from Texas and 10 Republican-led states over alleged antitrust violations related to climate initiatives.
