What the ESG Exodus Is Really Telling Us
BlackRock is not alone.
In recent weeks, Morgan Stanley announced its exit from the Net-Zero Banking Alliance. Citigroup, Bank of America, and before them, Goldman Sachs and Wells Fargo, have all taken the same path.
Even JPMorgan, the largest bank in the United States, has said goodbye.
It’s easy to frame this as a response to political pressure or short-term profitability — and yes, those elements are present. But this wave of exits reflects something deeper:
The current framework for climate action inside global financial institutions isn’t aligned with operational reality.
This doesn’t mean net-zero targets aren’t critical.
It means that the way we’ve built the road to get there isn’t working — at least, not in a way that resonates with the scale and complexity of financial institutions navigating competitive markets, evolving regulations, and geopolitical instability.
We need to stop asking, “Who’s pulling out?”
And start asking, “What needs to change in the way we design these commitments?”
Because real climate action in finance won’t come from rigid alliances or one-size-fits-all pledges. It will come from integrating sustainability into the actual DNA of strategy, pricing, risk modeling, and capital allocation.
The end goal is still net-zero.
But the path forward must evolve — from aspirational to actionable, from symbolic to structural.
The financial sector isn’t stepping away from the climate conversation.
It’s forcing us to reframe it.