The world’s biggest climate coalition for bankers says it has the right to ignore a proposal that would require members to phase out the financing of fossil fuels.
Tracey McDermott, chair of the Net-Zero Banking Alliance, said in a letter on Monday that the 119-strong group, which counts Deutsche Bank AG, Goldman Sachs Group Inc. and UBS Group AG among signatories, has “an autonomous governance structure and decision making process” and any changes to its guidelines “can only take place in accordance with that governance.”
Commenting in Bloomberg, Ben Caldecott said: “NZBA is saying it is part of the Glasgow Financial Alliance for Net Zero (GFANZ) and that doesn’t have anything to do with Race to Zero. But to be part of GFANZ you need be part of Race to Zero. Will GFANZ ditch this requirement and if it does, what are the new criteria to be part of GFANZ? And who marks that homework?”
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