US Banking Giants Withdraw from Equator Principles, Drawing Criticism

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Four major US banks have withdrawn from the Equator Principles, a long-standing framework guiding environmental and social standards for financial institutions involved in financing projects, particularly in the fossil fuel and mining sectors. The Equator Principles, though not legally binding, have served as a baseline for banks to address environmental risks associated with their investments. The departure of Citigroup, Bank of America, JPMorgan Chase, and Wells Fargo from this framework has sparked criticism from climate organizations, labeling the move as “shocking” and “cowardly.”

Richard Brooks, Stand. earth’s climate finance director, described the decision as ethically concerning and financially irresponsible, emphasizing banks prioritizing profit over basic environmental standards. Similarly, Adele Shraiman from the Sierra Club condemned the move as a display of Wall Street’s surrender to climate-denying pressures.

While the banks affirmed they would still consider the principles’ guidance, they have been delisted from the Equator Principles roster. This shift reflects a broader trend among US banks, which are facing increasing pressure from Republican-led states targeting so-called “woke capitalism.”

Aditi Sen, climate and energy director at Rainforest Action Network, expressed deep concern over the banks’ silent retreat, stressing its adverse effects on communities affected by environmentally harmful projects worldwide.