Attorney General Ken Paxton commended Bank of America, Morgan Stanley, and JPMorgan for their decision to exit the Net-Zero Banking Alliance (NZBA). The alliance is described by Paxton as an organization that promotes climate goals which may conflict with obligations to consumers and investors.
In October 2023, Paxton initiated a review concerning these banks' involvement with NZBA in relation to Senate Bill 13. This Texas legislation prohibits government entities from contracting with companies boycotting the oil and gas industries. The banks' membership in NZBA had suggested possible classification as energy boycotters under this law.
Wells Fargo recently ended its association with NZBA after encouragement from Attorney General Paxton, leading him to conclude his review of the bank. Following the withdrawal of all major U.S.-based banks from NZBA, reviews of Bank of America, Morgan Stanley, and JPMorgan will also be concluded.
“More and more financial institutions are taking a major step in the right direction by leaving the radical and anti-energy Net-Zero Banking Alliance. The NZBA seeks to undermine our vital oil and gas industries, and membership could potentially prevent banks from being able to enter into contracts with Texas governmental entities,” stated Attorney General Paxton. “I am glad that Bank of America, Morgan Stanley, and JPMorgan have terminated their NZBA membership.”