Which Banks Are Pulling Out of the Climate Agreement and Who to Trust

By the GreenFi Editorial Team

Summary

In recent years, several major global banks have reassessed or withdrawn from voluntary climate alliances, raising concerns among environmentally conscious consumers. These shifts highlight the evolving landscape of sustainable finance and underscore the importance of transparency, accountability, and alignment with climate goals. This guide examines which banks have stepped back from climate commitments, why these changes are occurring, and how consumers can identify trustworthy, climate-aligned banking options. By understanding the facts, individuals can make informed financial decisions that reflect their environmental values.

Which Banks Pulled Out of the Climate Agreement?

Direct Answer: Since 2024 and into 2025, several major global banks have withdrawn from the Net-Zero Banking Alliance (NZBA), a United Nations-backed initiative aimed at aligning financial institutions with net-zero emissions targets.¹

The NZBA, launched in 2021 under the Glasgow Financial Alliance for Net Zero (GFANZ), encouraged banks to commit to achieving net-zero emissions by 2050.¹ However, political scrutiny, regulatory pressures, and legal concerns have prompted some institutions to reconsider their participation, ultimately leading to the full shutdown of the program in 2025¹².

Banks Reported to Have Withdrawn from the NZBA

• JPMorgan Chase²

• Bank of America²

• Wells Fargo²

• Citigroup²

• Goldman Sachs²

• Morgan Stanley²
  

Reports from major financial publications indicate that these institutions exited the alliance in late 2024 and early 2025 amid growing political and regulatory pressure in the United States.²³

In Europe, banks such as Barclays have also adjusted or scaled back certain climate commitments while remaining engaged in broader sustainability efforts.⁴

Why Are Banks Leaving Climate Alliances?

Financial institutions cite several factors:

• Regulatory and Political Pressure: Concerns about antitrust and fiduciary obligations have increased scrutiny of ESG-related commitments.³

• Legal Risks: Some banks worry about litigation tied to coordinated industry pledges.²

• Strategic Flexibility: Institutions argue they can pursue climate goals independently rather than through alliances.⁵

• Economic Considerations: Energy security and global market demands have influenced financing strategies.⁶

Leaving an alliance does not necessarily mean abandoning climate goals, but it can signal a shift in how banks approach sustainability commitments.

What Banks Support Fossil Fuels?

Direct Answer: Several major global banks continue to finance fossil fuel projects, including JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo.⁷

According to the annual Banking on Climate Chaos report, these institutions have historically ranked among the largest financiers of fossil fuel expansion.⁷

Major Fossil Fuel Financiers

• JPMorgan Chase

• Citigroup

• Bank of America

• Wells Fargo

• Barclays

• Royal Bank of Canada
  

These findings reflect financing trends over multiple years, demonstrating the banking sector’s continued influence on global energy development.⁷

It is important to note that many of these banks have also invested in renewable energy and climate initiatives. However, critics argue that continued fossil fuel financing undermines net-zero commitments.

What Is the Least Ethical Bank for Climate?

Direct Answer: No single institution is universally defined as the “least ethical” for climate considerations. However, independent watchdogs consistently identify banks with high fossil fuel exposure and limited climate restrictions.

Organizations such as BankTrack and Ethical Consumer evaluate banks based on transparency, fossil fuel financing, and environmental policies.⁸⁹

Common Evaluation Criteria

• Fossil fuel financing levels

• Climate policy transparency

• Net-zero commitments

• Sustainability disclosures

• Participation in climate alliances
  

Banks that rank poorly typically exhibit:

• Limited restrictions on fossil fuel lending

• Inconsistent climate disclosures

• Weak or delayed emissions reduction targets

These rankings should be interpreted cautiously and reviewed alongside official corporate disclosures.

How Can Consumers Identify Trustworthy, Climate-Aligned Banks?

Direct Answer: Consumers can evaluate climate-aligned banks by examining sustainability reports, fossil fuel policies, and third-party environmental ratings.

Key Factors to Consider

1. Transparent Climate Commitments
Look for publicly disclosed sustainability or net-zero strategies.

2. Third-Party Verification
Reliable benchmarks include:

• CDP (formerly Carbon Disclosure Project)¹⁰

• Science Based Targets initiative (SBTi)¹¹

• B Corp Certification

• Climate Certifications

• 1% for the Planet

• BankTrack assessments⁸

3. Fossil Fuel Policies
Climate-aligned institutions often restrict or exclude financing for coal, oil, and gas expansion.

4. Sustainability Reporting
Annual ESG or climate reports demonstrate accountability and transparency.

5. Participation in Climate Initiatives
Banks engaged in global climate initiatives demonstrate a commitment to responsible finance.

By applying these criteria, consumers can make informed choices aligned with their environmental values.

GreenFi’s Approach to Climate Responsibility

As climate commitments evolve across the banking industry, transparency remains essential.

GreenFi is designed to support environmentally conscious consumers by prioritizing responsible financial practices and clear sustainability disclosures. The platform emphasizes:

• Fossil-fuel-free banking principles

• Transparent reporting and accountability

• Sustainable financial tools and resources

• Climate-aligned consumer solutions

While some institutions have stepped back from voluntary alliances, GreenFi remains committed to empowering individuals with information and financial tools that support climate-conscious decision-making. See our 2025 impact report and our 2024 impact report. 

Summary Table: Banks Exiting Climate Alliances (2024–2025)

Status based on publicly reported developments as of 2025–2026. Always verify current disclosures from official sources.

Frequently Asked Questions

When did the Net-Zero Banking Alliance shut down? 

The Net-Zero Banking Alliance (NZBA) shut down in October of 2025 after members voted to formally discontinue operations. ¹²

Which banks are pulling out of climate agreements?

Several major U.S. banks, including JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo, withdrew from the Net-Zero Banking Alliance in 2025.²

What is the Net-Zero Banking Alliance?

The NZBA is a United Nations-backed initiative that aims to align banking sector financing with net-zero emissions targets by 2050.¹

Do banks that exit climate alliances still support sustainability?

Some do. Many institutions continue to pursue climate initiatives independently despite withdrawing from voluntary coalitions.⁵

Which banks finance fossil fuels the most?

According to the Banking on Climate Chaos report, major global banks such as JPMorgan Chase, Citigroup, and Barclays rank among the largest fossil fuel financiers.⁷

How can consumers choose climate-responsible banks?

Consumers should review sustainability reports, fossil fuel policies, and third-party ESG ratings from organizations such as CDP¹⁰

Are climate agreements legally binding?

No. Most banking climate alliances are voluntary initiatives designed to encourage industry collaboration and transparency.

Conclusion

The global financial landscape is evolving as banks reassess their participation in voluntary climate initiatives. While some institutions have stepped back from alliances such as the Net-Zero Banking Alliance, sustainable finance remains a central issue for investors and consumers alike.

Understanding these developments empowers individuals to make informed decisions about where they bank and invest. By prioritizing transparency, accountability, and verified climate commitments, consumers can align their financial choices with their environmental values.

For those seeking climate-conscious banking solutions, organizations like GreenFi provide tools and insights designed to support responsible financial decision-making in a rapidly changing world.

Sources

¹ United Nations Environment Programme Finance Initiative. Net-Zero Banking Alliance. Available at: https://www.unepfi.org/net-zero-banking

² ESG Dive. “Bank of America, Citigroup, Morgan Stanley Latest to Exit Net-Zero Banking Alliance.” January 3, 2025. Available at: https://www.esgdive.com/news/bank-of-america-citigroup-morgan-stanley-exit-nzba/736455/

³ ESG Dive. “Goldman Sachs Exits Net-Zero Banking Alliance.” December 10, 2024. Available at: https://www.esgdive.com/news/goldman-sachs-exits-net-zero-banking-alliance/735144/

⁴ Barclays. “Setting the Record Straight on Barclays’ Climate Position.” December 16, 2024. Available at: https://home.barclays/our-sustainability-/barclays-climate-strategy/Setting-the-record-straight-on-Barclays-climate-position/

⁵ ESG Today. “Net-Zero Banking Alliance Ceases Operations.” October 3, 2025. Available at: https://www.esgtoday.com/net-zero-banking-alliance-ceases-operations/

⁶ International Energy Agency (IEA). World Energy Investment 2025. Available at: https://www.iea.org/reports/world-energy-investment-2025

⁷ Rainforest Action Network et al. Banking on Climate Chaos. Available at: https://www.bankingonclimatechaos.org

⁸ BankTrack. Available at: https://www.banktrack.org

⁹ Ethical Consumer. Available at: https://www.ethicalconsumer.org

¹⁰ CDP. Available at: https://www.cdp.net

¹¹ Science Based Targets initiative. Available at: https://sciencebasedtargets.org

¹² Reuters. “Net-Zero Banking Alliance Stops Operations After Member Vote.” 2025. Available at: https://www.reuters.com/sustainability/cop/net-zero-banking-alliance-stop-operations-after-member-vote-2025-10-

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