Morgan Stanley decides to leave sector climate coalition

LONDON: Bank Morgan Stanley said on Thursday it had decided to leave the Net-Zero Banking Alliance, becoming the latest US lender to quit the sector's top global climate coalition.

While the bank gave no reason for its decision, top banks have been under pressure from some US Republican politicians over their membership, with accusations that any move to limit finance to fossil fuel companies could breach antitrust rules.

Despite leaving the NZBA, Morgan Stanley said in a statement that its commitment to helping the world transition to net-zero carbon emissions "remains unchanged."

"We aim to contribute to real-economy decarbonisation by providing our clients with the advice and capital required to transform business models and reduce carbon intensity," it said.

The bank said it would also continue to report on its efforts toward previously set 2030 targets to reduce the emissions tied to its loan book.

The decision by Morgan Stanley follows similar moves in recent weeks by Citigroup, opens new tab, Bank of America, opens new tab, Wells Fargo, opens new tab and Goldman Sachs, opens new tab.

A US-based environmental advocacy group urged New York state on Thursday to regulate the financial sector and ensure its policies align with climate goals.

"These exits reveal the inadequacy of voluntary commitments and underscore the urgent need for state-level leadership and regulation," Vanessa Fajans-Turner, executive director of Environmental Advocates NY, said in a statement.