Four of Canada’s largest banks—BMO, National Bank of Canada, TD Bank Group, and Canadian Imperial Bank of Commerce (CIBC)—have announced their departure from the Net-Zero Banking Alliance (NZBA). The exits follow a wave of withdrawals by major US banks, including JPMorgan Chase, Morgan Stanley, and Goldman Sachs, over the past six weeks.
The decisions come amid growing scrutiny of the NZBA’s framework and effectiveness in supporting banks’ climate goals. A spokesperson for the alliance stated last week, prior to the Canadian exits, that the group is reviewing its ‘strategic priorities’ in consultation with its members.
CIBC’s Senior Director of Public Affairs, Tom Wallis, commented on the bank’s decision, noting that while the NZBA has played a valuable role in advancing climate efforts, the bank now believes it can continue this work independently.
“We recognise the scale and urgency of climate change, and our stated goals and commitments remain unchanged,” Wallis said. “We will continue to take concrete steps to mobilise our bank and clients in support of sustaining transition momentum.”
Similar comments were not immediately available from the other departing Canadian banks, which have been contacted for further input.
The series of exits from the NZBA follows a broader trend of banks reassessing their participation in high-profile climate initiatives. US-based banks, including Citi, Bank of America, Wells Fargo, and Goldman Sachs, have all recently left the alliance. The departures also coincide with significant political changes, including the inauguration of President Donald Trump, who has announced a rollback of climate-focused policies.
The NZBA, which aims to align financial institutions with global net-zero goals, has faced criticism for its perceived inflexibility and reporting requirements. This has led to discussions within the alliance about how to better support members while maintaining the integrity of its climate mission.
The exits of prominent US and Canadian banks raise questions about the future of the NZBA’s role in global climate finance. As the alliance reviews its strategic priorities, it must address the balance between supporting members’ independence and enforcing a unified approach to net-zero goals.
