The “anti-woke” political movement has claimed a major victory with the collapse of the Net Zero Banking Alliance (NZBA). The global banking coalition has been forced to shut down after its members, led by America’s largest banks, fled the organization to avoid being targeted by right-wing politicians.
The movement gained significant momentum after the re-election of Donald Trump, whose administration actively discouraged corporate involvement in environmental, social, and governance (ESG) issues. This created a climate of fear, where membership in the NZBA was seen as a political risk that invited accusations of “woke capitalism.”
The first to capitulate were the six giants of Wall Street. In a coordinated move late last year, JPMorgan Chase, Bank of America, and others quit the alliance to appease their conservative critics. This was a decisive win for the “anti-woke” movement and a fatal blow to the NZBA.
The victory had international repercussions. The departure of the US banks caused the alliance to lose its credibility and critical mass, leading to a steady stream of exits from European and Japanese members. The final nail was hammered in this summer when UK lenders HSBC and Barclays also withdrew.
The outcome has been met with dismay by sustainable investment advocates, who see it as a surrender to political bullying. However, it has emboldened critics of voluntary corporate action. They argue the episode shows that corporate pledges are easily broken under pressure and that only robust, government-enforced regulation can create lasting change in the financial sector’s approach to climate change.
