Citigroup and Bank of America announced Tuesday they are quitting the United Nations-backed Net-Zero Banking Alliance, after Goldman Sachs and Wells Fargo pulled out earlier last month. (Financial Times)

Talking point: The banking group is part of the broader Glasgow Financial Alliance for Net Zero (GFANZ) campaign launched by former central banker Mark Carney in 2021. Members agreed to curb greenhouse gases in line with the Paris Agreement to reach net-zero emissions by 2050. The group has faced opposing pressures, with environmentalists calling for bolder action like deeper and faster cuts to fossil fuel financing, while critics claim the criteria is too stringent and conflicts with fiduciary duties. GFANZ dropped some participation requirements in 2022 to make compliance easier, but it has still hemorrhaged members as Republicans in the U.S. have pushed legislation attacking environmental, social, and governance initiatives. The recent bank exodus comes ahead of Donald Trump’s second presidential term, during which he’s expected to walk back climate initiatives.