BlackRock Inc. has announced its withdrawal from the United Nations-backed Net-Zero Banking Alliance (NZBA), marking the latest high-profile exit within a month of President Trump’s victory. The departure comes as BlackRock and roughly 60 other companies face a congressional investigation into allegations of colluding as a “woke ESG cartel” to “impose radical environmental, social, and governance goals on American companies.”
Goldman Sachs initiated the exodus last month, followed by Wells Fargo, Citigroup, Bank of America, Morgan Stanley, and JPMorgan, according to The Center Square. The NZBA, described as a “bank-led and UN-convened” initiative, was formed to align global banking activities with net-zero greenhouse gas emissions targets by 2050.
The wave of departures began after President Trump pledged to expand domestic oil and gas production and target companies promoting ESG (environmental, social, and governance) goals. This shift comes two years after 19 state attorneys general launched an investigation into banks for allegedly engaging in deceptive trade practices related to ESG initiatives.
The U.S. House Judiciary Committee has also escalated its scrutiny of ESG practices, issuing a report titled “Climate Control: Exposing the Decarbonization Collusion in Environmental, Social, and Governance (ESG) Investing.” The report alleges the existence of a “climate cartel” comprising left-wing activists and major financial institutions working to impose ESG priorities on American companies.
Under Trump’s administration, the committee plans to continue investigating whether existing laws and penalties are sufficient to deter alleged anticompetitive behavior in ESG-focused investments. The committee has also sent letters to dozens of entities across 12 states and the District of Columbia, requesting detailed information on their activities by January 10, with most recipients located in New York, Massachusetts, and California.
