Big US banks threaten to leave Mark Carney’s climate alliance – FT

Sep 21 – Large Wall Street banks have threatened to pull out of United Nations climate envoy Mark Carney’s financial alliance due to legal risks, the Financial Times reported on Wednesday, basing its information on several people implicated. in internal conversations.

Morgan Stanley, JPMorgan and Bank of America are among the US banks weighing an exit from the deal as they fear being sued over the alliance’s strict decarbonization commitments, according to the article. (https://on.ft.com/3RZv9Cl)

The Glasgow Finance Alliance for Network Zero (GFANZ), created in 2021 by former Bank of England Governor Carney, is a coalition of asset managers, banks and insurers representing $130 trillion in assets earmarked for fighting climate change.

Morgan Stanley, JPMorgan, Bank of America and GFANZ They did not immediately respond to Reuters requests for comment outside normal business hours.

Some members of the alliance have recently declared that they “feel surprised by the tightening of the climatic criteria of the UN and are concerned about the legal risks of their participation,” according to the information.

Bank legal departments are particularly concerned about the rules of the United States Securities and Exchange Commission (SEQ) on disclosure of climate risks, adds the article. The SEQ will soon require that annual reports include formal information on governance, risk management and strategy in relation to climate change.

Bankers have also complained that the demands placed on them are not backed by sufficient government action on climate change and that there are fewer members in the GFANZ from the world’s biggest carbon-emitting countries, such as China, Russia and India, according to the article.

The GFANZ said earlier that it planned to publish a series of guidelines, white papers and other guidance to help its members achieve their climate goals, as it prepares for the next summit of the UN on the climate to be held in Egypt in November.

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