Citi and BofA exit UN-backed global climate pact

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Bank of America and Citigroup on Tuesday said they were quitting the world’s largest climate alliance for banks, the latest sign corporate America may retreat from climate goals during Donald Trump’s second term as US president.

BofA and Citi are the latest large US lenders to exit the Net-Zero Banking Alliance this month, following Goldman Sachs and Wells Fargo. The UN-backed climate pledge, which Citi helped launch in 2021, was hailed as a major step towards reducing global warming by limiting investment in and lending to industries that contribute to greenhouse gas emissions.

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In a statement, Citi said it remained committed to its climate goals despite exiting the alliance, and it planned to refocus its efforts on providing capital to emerging markets in order to support climate initiatives in those countries.

“We will continue to work with our clients on their transitions to a low-carbon economy while helping ensure energy security,” the bank said.

Like Citi, BofA in a statement said it would work with clients to meet their climate goals.

But US banks and other large companies have increasingly come under pressure from Republican lawmakers to distance themselves from pledges that would force banks to lend less to the oil and gas industry or other traditional energy producers.

That pressure has increased in the wake of Trump’s presidential win.

In November, Republican-led states filed a federal antitrust lawsuit against BlackRock, State Street and Vanguard, accusing the three largest US index fund managers of using their investing power to constrict supplies in pursuit of net zero carbon emissions goals.

Additional reporting by Kenza Bryan in London and Patrick Temple-West in New York