Business travel emissions have risen at major US banks that recently left net-zero global banking alliances – although many are still down from pre-Covid levels.
Over 140 global banks in the United Nations-backed Net Zero Banking Alliance (NZBA) group are committing to net zero greenhouse gas emissions by 2050 from their business and investments.
Last December, Goldman Sachs, Wells Fargo, Citigroup and Bank of America pulled out of the NZBA. Then, over the past two weeks, Morgan Stanley and JPMorgan also left.
Most of the banks that are part of the exodus said they are still committed to helping fight climate change and becoming net-zero.
Skift looked at business travel emissions at each bank, and the data reveals a mixed picture. Business travel issuance at some of the banks is still not even half of what it was before the pandemic, despite economic growth since then. But issuance was rising again from 2022 to 2023, according to the latest data available in the banks’ annual reports.
JPMorgan, the largest bank in the United States, surpassed pre-pandemic business travel emission levels that year.
“We strive to manage the environmental impact of our operations, which include regular activities such as business travel,” a JPMorgan spokesperson told Skift. “To complement ongoing emissions reduction efforts, we seek to address our unmitigated emissions – including business travel – by purchasing and withdrawing high-quality carbon credits,” the spokesperson said.
Blackrock was not a member of the NZBA. But a Bloomberg report said a letter sent last Thursday by Blackrock to clients said the bank had pulled out of a similar alliance, the Zero Net Asset Managers (NZAM) initiative.
Business travel emissions
| company | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| JPMorgan Chase | 181,004 | 36,169 | 38,336 | 156,854 | 255,481 |
| Citigroup | 126,055 | 21785 | 10,554 | 63681 | 69,751 |
| Blackrock | 39,116 | 6606* | 3079 | 18,363 | No data available yet |
| Goldman Sachs | 135,473 | 29295 | 24496 | 61.517 | 79,915 |
| Bank of America | 147,379 | 28,570 | 17,075 | 72730 | 82204 |
| Morgan Stanley | 99700 | 20,451 | 21500 | 57,057 | 96,031 |
| Wells Fargo | 71,019 | 14,111 | 4795 | 27,403 | 38,354 |
Source: Each bank’s annual ESG and sustainability/climate report. Figures shown are in MTCO2e.
- JPMorganChase said emissions associated with business travel are mostly from commercially operated air travel, but the figure includes rail and rental cars.
- Blackrock’s figures consist of air travel, car hire and car services.
- Goldman Sachs: For 2019, 2020, 2022 and 2023 – over 80% of the figure consists of air travel emissions. 2021 is 67% of air travel.
- Bank of America, Morgan Stanley Business travel emissions come primarily from air travel, as well as rail use, car rentals and hotel stays.
- Wells Fargo figures are air travel only.
A spokesperson from Goldman Sachs responded to Skift’s request for comment on the bank’s growth in business travel emissions with a link to the bank’s latest sustainability report. “We have been carbon neutral in all our operations and business travel since 2015,” the report said. The bank said it achieved this by reducing emissions, buying carbon offsets and sourcing renewable energy.
A spokesperson for Wells Fargo told Skift that the bank “has terminated its membership with the NZBA.” On its website, Wells Fargo said it has a goal to reduce its 2019 greenhouse gas emissions levels by 70% by 2030, but the goal does not include business travel.
A letter signed by Blackrock Vice Chairman Philipp Hildebrand and Helen Lees-Jones, global head of sustainability and transition solutions, and sent to clients, said the asset manager’s NZAM membership had no impact on how it managed its portfolios. customers.
“Therefore, our departure does not change the way we develop products and solutions for customers or the way we manage their portfolios,” the letter said.
In its latest sustainability report, Blackrock said that staff business travel is a “significant source of emissions” but that it is also a “critical component of doing business”.
“BlackRock is exploring ways to reduce travel emissions through operational changes and also through mechanisms such as sustainable aviation fuel certificates,” he said.
A spokesperson for Goldman Sachs responded to Skift’s request for comment with a link to the firm’s sustainability section of its website. “We have been carbon neutral in all our operations and business travel since 2015,” the website states.
Citigroup, which aims to be net zero by 2050, said in a statement that it ranked as the No. 1 leading US underwriter in 2023 for “global, green, social, sustainability and sustainability-related bonds.”
Morgan Stanley did not respond to Skift’s request for comment.
The Global Business Travel Association (GBTA) recently revealed in a report that business travel exceeded expectations in 2024 and is expected to continue to grow.
He said sustainability is a growing focus, with an increasing number of businesses thinking about the impact of business travel
An NZBA spokesperson told Skift they would not comment on the departures.
Skift’s in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This support allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift’s editorial team.
