Wall Street retreats from climate change commitments

Many major financial firms that once pledged net-zero and ESG commitments have since scaled back or suspended those promises, with several net-zero alliances inactive and political pressure, subpoenas and state investigations cited as drivers.

Major Wall Street institutions once publicly pledged to steer capital toward lowering greenhouse gas emissions and backing clean energy. That push gathered momentum in 2020–2021, led by high-profile calls from asset managers and the creation of groups such as the Glasgow Financial Alliance for Net Zero (GFANZ). Since then, many firms have rolled back or suspended those commitments amid political opposition, legal scrutiny and changes in business priorities. What is known: - BlackRock and its CEO Larry Fink were prominent early advocates for using investment capital to address climate change and helped popularize ESG funds. - GFANZ and related initiatives gathered hundreds of financial firms but several member alliances later folded or suspended activities, and many major U.S. banks withdrew from those groups. - Republican state treasurers, conservative groups and some legislators pressured firms, withdrawing assets, introducing laws and opening investigations; Congress issued subpoenas to GFANZ, BlackRock and others. - While U.S. clean-energy investment has risen, reporting shows corporate discussions of "climate" and "sustainability" have declined and some banks have continued or increased financing for fossil fuel projects. Summary: The shift has reduced the visible role that many large financial firms play in publicly promoting climate goals and left several industry initiatives inactive or restructured. Ongoing investigations, asset withdrawals driven by political actors, and statements from industry groups that some alliances will relaunch indicate the situation remains unsettled and subject to further developments.