Leading U.S. investment bank Goldman Sachs (GS) has exited a global coalition that aims to align bank lending and investments with efforts to stem the impacts of climate change.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Goldman Sachs quitting the Net-Zero Banking Alliance is viewed as a major blow to the coalition given the Wall Street firm’s influence and deep pockets. Goldman’s decision comes amid rising pressure from Republican politicians in Washington, D.C. who have suggested that membership in the climate coalition runs counter to American interests and violates U.S. antitrust laws.
Wall Street firms, including BlackRock (BLK), are being sued by Texas and 10 other Republican-led states over alleged violations of antitrust laws related to climate actions. Goldman Sachs gave no public explanation for quitting the Net-Zero Banking Alliance other than to say it is focusing on its own strategies.
“We have the capabilities to achieve our goals and to support the sustainability objectives of our clients,” the investment bank said in a written statement.
Climate Accords Under Threat
Some analysts and environmental activists have expressed concern that climate accords around the world that aim to stop the production of greenhouse gases could now be under threat as U.S. president-elect Donald Trump returns to the White House. On the election campaign trail this year, Trump promised to let U.S. oil and gas companies “drill, baby, drill.”
Banks join the Net-Zero Banking Alliance on a voluntary basis and agree to align their lending and investments with the goal of reaching net-zero carbon emissions by 2050, and publish progress on their efforts each year. Goldman Sachs said that it would continue to publish progress on its net-zero progress going forward.
“Our priorities remain to help our clients achieve their sustainability goals and to measure and report on our progress,” said Goldman Sachs. GS stock has risen 58% so far in 2024.
Is GS Stock a Buy?
The stock of Goldman Sachs has a consensus Strong Buy rating among 16 Wall Street analysts. That rating is based on 12 Buy, 4 Hold, and no Sell recommendations issued in the last three months. The average GS price target of $597.73 implies 0.21% upside from current levels.
