Financial giant Goldman Sachs has announced that it will no longer join the United Nations-backed Net Zero Banking Alliance (NZBA). This comes following scrutiny from US lawmakers who are concerned that banks are seeking to significantly limit climate financing options over fossil fuel concerns. This is the latest high-profile departure of .
The NZBA has a goal of achieving net-zero emissions by 2050 and boasts over 140 World Bank memberships. The United Nations Environment Program (UNEP), which oversees the partnership, has so far not commented on Goldman Sachs' departure.
Reuters reported that the banking giant did not provide a specific reason for the departure. However, he suggested that specific regulatory requirements from the European Union may be a factor. Goldman Sachs is the latest company to withdraw from the climate-based coalition. JPMorgan Asset Management, Franklin Templeton and Vanguard recently left similar climate change alliances.
Goldman Sachs said in a statement:
We have the ability to achieve our goals and support our clients' sustainability goals. Goldman Sachs also has a strong focus on the increasing sustainability standards and reporting requirements imposed by regulatory authorities around the world.
Our priority is to help our clients achieve their sustainability goals and to measure and report on our progress.
The company has assured investors that it remains committed to promoting sustainability and climate action, and its departure from the United Nations group speaks to that.
ESG investment
Various state investigations into so-called ESG (Environmental, Social, Governance) investments across the country also appear to be having an impact, with banks increasingly realizing that ESG has a negative impact on their business. Many banks essentially function as conduits for left-wing political activity, becoming persona non grata for national pension funds. To date, at least 20 states have effectively banned ESG investing in state pension funds.
Texas Governor Greg Abbott told President Joe Biden in 2023: “Over the past two years, you've had an ESG fanaticism, an overly aggressive Environmental Protection Agency, and a preference for foreign oil over domestic energy.'' “We have tried to suppress America's energy sector by doing so.” “By promoting this radical ESG agenda, you are putting millions of dollars of your lifetime savings at risk in order to score political points.”
Ever since the United States re-elected Donald Trump in November, climate enthusiasts have worried that their crisis narrative on climate change is in trouble. Goldman Sachs' decision to leave the NZBA suggests they may be right about that.
Missouri Sen. Eric Schmidt, a Republican and former state attorney general, said the NZBA was created to “starve out companies that engage in fossil fuel-related credit activity in domestic and international markets.”
Mr Schmidt said it wasn't just fossil fuel companies that were under threat from the NZBA.
Missouri farmers, oil leasing companies, and other businesses essential to Missouri's and America's economies will be unable to obtain financing because of this partnership. These banks are responsible for following American law. We do not let international organizations set the standards for our business.
This, of course, is the whole point of ESG schemes. The goal is international control over U.S. banks, where climate change and “social justice” are limiting factors for growth.
ESG was once considered the wave of the future in the financial industry. But it looks more and more like another sad chapter in left-wing madness destined for the scrap heap of history.
