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Banks May Leave Mark Carney’s Climate Group on Legal Risks

  • JPMorgan is among banks considering leaving the GFANZ group
  • Climate pledges have become increasingly contentious
Mark Carney

Mark Carney

Photographer: Jason Alden/Bloomberg
Updated on

Banks including JPMorgan Chase & Co. and Morgan Stanley may leave the Glasgow Financial Alliance for Net Zero, Mark Carney’s coalition to fight climate change, because they fear the organization’s strict requirements for decarbonization may make them legally vulnerable.

The lenders’ misgivings have been raised in recent GFANZ meetings, people familiar with the matter said, who declined to be identified because the discussions have been private. Bank of America Corp. also has considered exiting the coalition, according to a person familiar. While Banco Santander SA and other European banks share some of the misgivings, they have no plans to exit the coalition, said another person familiar with the matter.