Bank of Nova Scotia, known as Scotiabank, and several major Canadian banks said on Monday they are pulling out of the Net-Zero Banking Alliance, a growing list of financial institutions stepping back from the global climate coalition.
This is another exit by leading US banks similar to Goldman Sachs, Wells Fargo, Citi, Bank of America, Morgan Stanley, and JPMorgan, that have also resigned from the same alliance. Another Canadian bank walking out is TD Bank, followed by Bank of Montreal, National Bank of Canada, and also Canadian Imperial Bank of Commerce or CIBC.
According to a Scotiabank spokesperson, despite the resignation, the bank is proceeding as committed to its Climate Transition Plan. “We will continue to fund the transition and support our clients in implementing their sustainability strategies,” the spokesperson added.
It came at a time when more and more climate-related policies were coming under scrutinies, especially with Donald Trump back in the White House. Donald Trump has repeatedly criticized government-imposed climate policies and had much to do in shaping the overall financial landscape.
Such developments mark a pattern of the finance sector where the banks are divesting themselves of international climate commitments but continue to fund the shift to a more sustainable practice.
