By KOHEI HIGASHITANI/ Staff Writer
March 5, 2025 at 16:03 JST
Sumitomo Mitsui Financial Group Inc., which includes Sumitomo Mitsui Banking Corp., is one of the three largest financial institutions in Japan. (Asahi Shimbun file photo)
As climate change skepticism continues under the second Trump administration, Sumitomo Mitsui Financial Group Inc. (SMFG) has become the first Japanese bank to withdraw from the Net-Zero Banking Alliance, the industry’s global decarbonization initiative.
The March 4 announcement follows a series of similar withdrawals by U.S. financial institutions.
Japan’s two other largest banks, Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc., may soon follow suit.
Established in 2021, the NZBA comprises more than 130 financial institutions committed to achieving net-zero greenhouse gas emissions in their lending and investment portfolios by 2050.
However, some members of the U.S. Republican Party have criticized that banks collectively restricting investments and loans to the fossil fuel industry could violate antitrust laws.
Additionally, the return of climate change skeptic Donald Trump to the White House has further fueled the trend of withdrawals by U.S. financial institutions, including Goldman Sachs, Citigroup Inc. and JPMorgan Chase & Co.
Even as it pulled out of the global framework, SMFG emphasized that its climate commitment would remain unchanged.
From Japan, Sumitomo Mitsui Trust Group Inc., Norinchukin Bank and Nomura Holdings Inc. have also joined the NZBA.
Norinchukin Bank officials stated that they are currently discussing their plans regarding the alliance.
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