The Net Zero Banking Alliance (NZBA) has become another high-profile victim of the so-called “woke” wars. The global banking coalition has been forced to disband after political pressure, particularly from the US, made its mission of promoting climate-friendly finance untenable for its members.
The war on “woke” capitalism escalated dramatically after the re-election of Donald Trump. Conservative politicians and activists began to aggressively target companies for their environmental, social, and governance (ESG) policies, framing them as a left-wing agenda. The NZBA, as a prominent ESG-aligned initiative, became a prime target.
Fearing the consequences of being labeled “woke,” the six largest American banks made a preemptive move to exit the alliance. This included financial titans like JPMorgan Chase and Bank of America, whose departure was a clear attempt to avoid being drawn into the political fray. However, it also served to dismantle the global organization.
The American exit had a chilling effect on international members. The alliance, stripped of its most powerful contingent, appeared weak and ineffective. Banks in Europe and Japan followed their US counterparts out the door, with the recent withdrawals of HSBC and Barclays signaling the final defeat.
The demise of the NZBA is being seen as a major victory for the anti-ESG movement. For climate advocates, however, it is a stark reminder that corporate pledges can evaporate in the face of political opposition. They argue that this outcome reinforces the need for climate policy to be enshrined in law, where it cannot be so easily derailed by partisan culture wars.