Are the Net Zero Alliances falling apart?
Sadly yes.
But the reason why is not what many observers believe.
Most of the large banking and investment management groups who have withdrawn from the Net Zero Banking Alliance or Asset Managers Alliance have publicly reiterated their commitment to net zero targets, and continue to invest in their sustainability advisory teams.
𝗧𝗵𝗲 𝗿𝗲𝗮𝘀𝗼𝗻 𝘄𝗵𝘆 𝘁𝗵𝗲𝘆 𝗵𝗮𝘃𝗲 𝗽𝘂𝗹𝗹𝗲𝗱 𝗼𝘂𝘁 𝗼𝗳 𝘁𝗵𝗲𝘀𝗲 𝗮𝗹𝗹𝗶𝗮𝗻𝗰𝗲𝘀 𝗶𝘀 𝗳𝗲𝗮𝗿 𝗼𝗳 𝗹𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻.
The House of Representatives Committee on the Judiciary has written to most members of these alliances and, essentially, accused them of having joined a cartel, which is colluding to defund the American oil and gas industry.
The recipients of these accusatory letters, after extended deliberations with their lawyers, have concluded (or likely will do soon) that the probability of successful legal action against them is too great.
𝗪𝗶𝗹𝗹 𝘁𝗵𝗲𝗿𝗲 𝗯𝗲 𝗮 𝗳𝗶𝗴𝗵𝘁𝗯𝗮𝗰𝗸? 𝗜𝘁 𝗱𝗼𝗲𝘀𝗻'𝘁 𝗹𝗼𝗼𝗸 𝗹𝗶𝗸𝗲 𝗶𝘁.
NZAM (The Net Zero Asset Managers alliance) has even suspended its activities, after Blackrock, the world's largest asset manager pulled out recently. The only news we now see is incremental departures.
Looking at the pullback on DEI we are seeing from many of the US' largest companies, it seems no one wants to pick a fight with the new Republican-led US legislature.
And Mark Carney, the principal architect of these alliances (which sit under the umbrella known as GFANZ), has remained quiet.
As of this week, he arguably has bigger battles to fight. 🇨🇦
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