The Globe and Mail reports in its Friday edition that Canada's big banks are growing uncomfortable about legal and governance risks stemming from their membership in a Mark Carney-led group of global financial institutions that has pledged to cut carbon emissions in line with the Paris Agreement. The Globe's Jeffrey Jones and James Bradshaw write that the banks' qualms about the Glasgow Financial Alliance for Net Zero, or GFANZ, are coming to light as some of their U.S. counterparts consider leaving the organization over fears they could face legal action stemming from antitrust concerns if they are required to divest from some high-emitting sectors in their efforts to decarbonize. JP Morgan Chase, Morgan Stanley and Bank of America have signalled they could quit, which would deal a serious blow to the group's credibility. Senior officials at Canada's six largest banks also recently expressed misgivings about legal risks tied to their GFANZ membership. The banks joined the alliance in 2021, agreeing to sign on only after months of discussions to gain assurances they would not have to abruptly abandon high-emitting industries that make up a large portion of Canadian exports, including oil and gas and mining.
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