Bank of Montreal Breaks Climate Coalition Ranks

Bank of Montreal has become the first Canadian bank to exit the Net-Zero Banking Alliance, amid political pressure. This move follows similar actions by U.S. banks like Goldman Sachs and JPMorgan. BMO remains committed to climate goals, focusing on internal capabilities and regulatory compliance.

The Bank of Montreal (BMO) has announced its departure from the Net-Zero Banking Alliance (NZBA), becoming the first Canadian financial institution to leave the global climate coalition. This follows a recent trend among U.S. banks which have exited due to increasing political pressure stateside.

Notable American banks including Goldman Sachs, Wells Fargo, Citi, Bank of America, Morgan Stanley, and JPMorgan have similarly withdrawn from the alliance in recent months. Despite its exit, BMO insists it remains dedicated to its climate strategy and aims to support clients in transitioning to a net-zero economy.

The bank, ranked as Canada's third largest, asserts it possesses robust internal capabilities to adhere to international standards necessary for climate strategy alignment and regulatory compliance. Meanwhile, Canadian banks face increasing demands to manage climate-related risks, with national regulatory bodies introducing new guidelines.

(With inputs from agencies.)