Two of Canada’s largest banks signalled that they may pull out of the Net-Zero Banking Alliance (NZBA) amid an exodus of big U.S. banks including Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of America, Citigroup and JPMorgan Chase. (Bloomberg)

Talking point: Royal Bank of Canada chief executive Dave McKay said at an industry conference that NZBA may not be the “right mechanism” to achieve climate goals, and that leaving the alliance wouldn’t mean the bank isn’t committed to its net-zero targets. Bank of Montreal CEO Darryl White said at the event that the bank is still an NZAB member, at least for now. 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, but have since faced intensifying push back, mainly from U.S. Republicans arguing environmental, social, and governance initiatives are incompatible with firms’ fiduciary duties.