Macquarie first Australian bank to quit international climate alliance

Macquarie is quitting the world’s biggest climate banking alliance, becoming the first major Australian financial institution to withdraw since Donald Trump’s return to the While House.

The ASX-listed financial services goliath joins a list of major investment banks and lenders in the US — such as Goldman Sachs, JPMorgan, Citi and Bank of America — out the door.

The Net Zero Banking Alliance also counts Australia’s big four banks and the Bank of Queensland as members.

Led by former Bank of England governor Mark Carney, the United Nations-backed alliance aims to cut net emissions to zero and publishes details of its members’ climate targets.

Announcing the decision this week, Macquarie said it would focus on “updating and delivering our plans and reporting in line with regulatory requirements”.

“The Net Zero Banking Alliance helped develop global frameworks and assisted member banks as they established their initial decarbonisation plans,” it said in a statement.

“With those building blocks now in place, like many peers Macquarie will no longer be a member of NZBA.”

At the same time, Macquarie said the energy transition must be managed “orderly and just”.

“Which is why we have continued to support carbon intensive industries to reduce their emissions and continue to work with oil and gas companies,” it said.

Mr Trump’s presidential victory has thrown the future of global climate action in doubt, given his move to pull the US from the Paris Agreement for the second time and roll back clean-energy investments.

Some of the world’s biggest financiers and asset managers are increasingly rethinking their approach to emissions reduction initiatives amid ongoing attacks on climate finance by the Trump administration.

The president-elect is publicly in favour of oil and gas investment and has referred to climate change as a “hoax”.

The Shemara Wikramanayake-led group did not provide any further details of its exit but said it would provide updates in its annual report in May.

CommBank, however, remains committed to the Net Zero Banking Alliance.

“To the extent we would consider changes to our framework around climate disclosures, that would be in our climate report in August,” chief executive Matt Comyn said in a call on Wednesday as it unveiled half-year results.

“More broadly . . . we will continue to support our customers, the Australian economy, and we are, of course, conscious of any changes to government policy.”