Four of Canada’s largest banks have withdrawn from the UN-backed Net-Zero Banking Alliance (NZBA), joining a growing list of financial institutions abandoning global climate initiatives. Bank of Montreal (BMO), National Bank, TD Bank Group, and CIBC confirmed their exits, citing the ability to pursue independent climate strategies. The move mirrors recent withdrawals by major U.S. banks ahead of Donald Trump’s upcoming inauguration, as political opposition to climate alliances intensifies in the United States.
This wave of departures highlights the challenges facing Mark Carney’s Glasgow Financial Alliance for Net Zero (GFANZ), a coalition of over 160 financial institutions committed to aligning lending and investment practices with net-zero emissions targets by 2050. BlackRock, the world’s largest asset manager, left a related initiative earlier this month, triggering the suspension of activities within the Net Zero Asset Managers Initiative.
Despite their exit, Canadian banks maintain their commitment to sustainability. BMO stated it has robust capabilities to meet climate goals without external alliances, while National Bank cited its efforts to streamline reporting and engage with industries on decarbonization. TD emphasized its capacity to advance its climate strategy independently, and CIBC claimed significant progress has positioned it to continue this work outside formal structures.
Greenpeace Canada criticized the withdrawals, calling for stricter government regulations to ensure financial institutions contribute meaningfully to the fight against climate change. Keith Stewart, a senior energy strategist at Greenpeace, labeled the exits as an abdication of responsibility, urging regulatory oversight to align banks with global climate goals.
RBC and Scotiabank remain members of the alliance, along with credit unions like Vancity and Coast Capital. However, RBC’s CEO, Dave McKay, recently expressed doubts about the alliance’s effectiveness, hinting at potential further changes in the financial sector’s approach to climate commitments.
As Mark Carney, a potential contender for Canada’s Liberal Party leadership, continues advocating for climate action through GFANZ, these developments underscore the complexities of balancing political, regulatory, and environmental pressures in the global financial landscape.