“Another ESG Rat Jumps Ship”: Morgan Stanley Quits Net-Zero Banking Alliance Ahead Of Trump 2.0

The US could be in the very early stages of recovery after a decade of toxic ESG and Net Zero initiatives, widely criticized as one of the biggest financial and ideological blunders in a generation. Wall Street firms increasingly recognize that the “woke capitalism” era in corporate America will come to an abrupt end under Trump 2.0. 

Bloomberg reports that Morgan Stanley is the latest Wall Street firm to abandon the Net-Zero Banking Alliance (NZBA), a group of banks worldwide that push woke climate initiatives. 

Morgan Stanley’s exit comes after Wells Fargo and Goldman Sachs left NZBA early last month. 

“Another ESG rat jumps ship,” Steve Milloy, a lawyer who served under Trump 1.0, wrote on X.

Another ESG rat jumps ship: @MorganStanley leaves the illegal Net Zero Banking Alliance. https://t.co/IcbIdcBnmJ@Citi and @BankofAmerica abandoned ship earlier this week. https://t.co/AHshWWTdPq pic.twitter.com/7KiizZFWFL

— Steve Milloy (@JunkScience) January 2, 2025

According to Bloomberg, “NZBA coordinates its work with the Glasgow Financial Alliance for Net Zero, which is backed by the United Nations. GFANZ said earlier this week it’s making changes that will “redouble its efforts to mobilize private capital” and support the energy transition.” 

On X, Bloomberg’s Javier Blas wrote, “Wall Street is quitting en masse the Net-Zero Banking Alliance.” 

Wall Street is quitting en masse the Net-Zero Banking Alliance:

Today, Morgan Stanley says goodbye. Earlier this week, Citigroup Inc. and Bank of America announced they had left. And Goldman Sachs Group and Wells Fargo quit in December. #ESG #ClimateChange

— Javier Blas (@JavierBlas) January 2, 2025

Data from Preqin Pro shows ESG fundraising peaked in 2022 and has since plunged into the first half of 2024. Wall Street discovered that ESG and woke capitalism don’t translate into solid returns. The green bubble has popped.

In November, Texas Attorney General Ken Paxton and ten other states sued BlackRock, State Street Corporation, and Vanguard Group “for conspiring to artificially constrict the market for coal through anticompetitive trade practices.” 

Paxton wrote in a statement:

“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda. BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices. Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”

After billions of dollars were poured “straight into the dumpster” of risky climate investments, as one X user explained…

“Citigroup said it’s leaving the Net-Zero Banking Alliance,”

ESG/DEI

Billions of dollars straight into the dumpster. pic.twitter.com/y1eBDQCGHv

— Douglas Ritz (@douglasritz) January 1, 2025

We have highlighted that nuclear is the only sustainable clean energy solution.

Everything else is just a scheme to siphon taxpayer dollars.

oh no, it was all a charade https://t.co/f9lt9jkbmi pic.twitter.com/w3rNXOEsPQ

— zerohedge (@zerohedge) January 2, 2025

In other words, a giant political shift is underway. So, about BlackRock’s Larry Fink…