DNBBF - Big Banks And Sustainability: What's The Real Story?
2025-01-29 08:30:00 ET
Summary
- The last of the six major US banks recently exited the Net Zero Banking Alliance.
- These departures may have created a buzz, but we caution investors against being misled by the noise.
- The banks themselves, via varying statements, maintain they are committed to reducing their carbon footprints, financing the energy transition, and supporting sustainable development.
- The Calamos Sustainable Equities Team continues to identify opportunities to invest in banks with high-quality growth fundamentals — companies that are global leaders because of their alignment with secular trends and ability to manage financial and nonfinancial risks.
Originally posted on January 24, 2025
By Jim Madden, CFA, Tony Tursich, CFA, and Beth Williamson
The Net Zero Banking Alliance (NZBA) has received yet another blow. At the end of 2024, JPMorgan ( JPM ) became the last of Wall Street's biggest banks to abandon the industry's largest climate-finance alliance, following Citigroup Inc. ( C ), Bank of America Corp. ( BAC ), Goldman Sachs Group Inc. ( GS ), and Wells Fargo & Co. Industry ( WFC ) watchers generally believe these exits are motivated-at least in part-by a desire to avoid a backlash in the wake of President Trump's return to office....
Big Banks And Sustainability: What's The Real Story?