BMO withdraws from banking climate alliance ahead of Trump inauguration

BMO leaves green alliance

Photo: The Canadian Press

The Bank of Montreal (BMO) building is pictured in Ottawa on June 3, 2024. THE CANADIAN PRESS/Sean Kilpatrick

Bank of Montreal has withdrawn from the UN-backed Net-Zero Banking Alliance that aims to accelerate climate action among financial institutions.

It becomes the first Canadian bank to pull out of the alliance, but follows on withdrawals by major U.S. banks ahead of the presidential inauguration of Donald Trump.

BMO says in a statement that it is committed to its climate strategy and to supporting clients in the transition to a net zero world.

The news, first reported by Reuters, comes after BMO chief executive Darryl White hinted at a conference earlier in January that the bank's days in the alliance were numbered.

At the same conference, RBC chief executive Dave McKay said the alliance was in flux and questioned whether it was the right mechanism to reduce emissions.

As of Friday, RBC was still listed as a member, as were other Big Six banks with the exception of BMO, while credit unions including Vancity and Coast Capital are also members.