ESG & Investing
Why Banks Keep Lowering Their Climate Targets
While it’s clear right-wing politics has something to do with it, there’s an argument that scientific reality does, too.
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When Morgan Stanley moved the goalposts back on its climate targets in October, members of the industry’s biggest climate alliance were caught off guard.
The steering group of the Net-Zero Banking Alliance (NZBA) debated if the Wall Street firm—at that time a member of the group—would be allowed to deviate from the founding principle that signatories align portfolios with the goal of limiting global warming to 1.5C, according to a person familiar with the matter. The group also discussed what the consequences for such a move should be.