Major U.S. banks and money managers have largely withdrawn from prominent environmental coalitions focused on 'net zero' emissions, according to a report. All six major U.S. banks—JPMorgan Chase, Bank of America, Goldman Sachs, Citigroup, Morgan Stanley, and Wells Fargo—have exited the Net Zero Banking Alliance, contributing to its operational collapse as a membership organization.
This exodus has led to a nearly 90% decline in banks' support for 'net zero' causes over the past four years, the report from the Committee to Unleash Prosperity found. The Net Zero Banking Alliance, which once represented 140 member banks with $75.5 trillion in assets, ceased operations as a membership group in October 2025, now offering only voluntary climate guidelines.
"There's been a vibe shift in the culture," said Jerry Bowyer, CEO of Bowyer Research and a report author. He suggested that some financial institutions may not have fully grasped their commitments when joining these groups, and later found some of the climate groups' claims to be more disputable. The surging energy demands of artificial intelligence and data centers have also underscored the continued need for fossil fuels.
Retreat from Climate Initiatives
The report examined the climate affiliations of major U.S. banks and asset managers overseeing more than $40 trillion in assets. As of October 2025, none of the examined institutions remained members of the Net Zero Banking Alliance, the Net Zero Asset Managers initiative (NZAM), or Climate Action 100+.
The NZAM initiative, which at its peak had over 300 members managing nearly $60 trillion, suspended operations in January 2025 after BlackRock, among other major U.S. asset managers, withdrew. Climate Action 100+ also saw a significant number of major money managers depart in 2024, including JPMorgan, State Street, and BlackRock's U.S. operations. Morgan Stanley left in July 2024, followed by Goldman Sachs and Mellon Investments in August.
However, this withdrawal from headline coalitions does not necessarily mean a complete abandonment of climate policies by Wall Street. Some firms continue to promote internal climate initiatives or maintain relationships with other environmental organizations. JPMorgan, for instance, still features substantial sustainability content on its website despite leaving major alliances, though its approach has moderated to focus on financing alternative energy rather than solely on reducing fossil fuel use.
Specific Bank Actions
Wells Fargo took a more significant step, announcing in February 2025 its discontinuation of sector-specific 2030 financed-emissions targets and its 2050 net-zero financed emissions goal. The bank stated that "Many of the conditions necessary to facilitate our clients' transitions have not occurred."
Vanguard was an early defector, leaving the Net Zero Asset Managers initiative in December 2022. In February 2025, the firm settled a Texas-led antitrust lawsuit for $29.5 million, agreeing that its U.S. business would not join groups with "climate-focused investment or stewardship objectives."
BlackRock withdrew from the Net Zero Asset Managers initiative in January 2025, citing "legal inquiries from various public officials."
Despite these withdrawals, the report notes that some banks maintain stronger ties to climate organizations. Morgan Stanley, Bank of America, Pimco, and Citigroup remain members of the Partnership for Carbon Accounting Financials (PCAF). Morgan Stanley, Bank of America, and Citigroup are also members of Ceres' Company Network. Pimco withdrew from Climate Action 100+ in February 2024 but remains a signatory to PCAF.
Driving Factors
The report argues that political and legal pressure contributed to Wall Street's retreat. In October 2022, 19 state attorneys general initiated an antitrust investigation into several major banks over their membership in the Net Zero Banking Alliance.
Bowyer suggested that political winds played a role, noting, "The politics got them into these groups. Physics and economics got them out." Stephen Moore, co-founder of the Committee to Unleash Prosperity, echoed this sentiment, stating that the shift away from climate policies accelerated with changing political administrations.
"When Biden was running things, everybody rushed to sign on to these ideas," Moore said. "And of course, when Trump won, they all ran away from it." He added, however, that the reversal began before the change in administrations and represents a steady progression away from radical climate policies.
The report concludes that Wall Street's retreat is not yet complete, as some firms retain climate targets and reporting frameworks similar to those of the alliances they left. Bowyer predicted further withdrawals, stating, "These groups tend to kind of move together. So if the industry standard is getting out of outside climate groups, then I think that the others will get out of more of them too."