The news: A report released by a coalition of eight global environmental groups found that major banks committed $869 billion to fossil fuel companies in 2024—$162 billion more than in 2023—reversing a previous downward trend, per the Guardian.

The details: Four of the five biggest fossil fuel financiers were US banks. Most of the largest US banks have also retreated from global climate alliances since President Trump won the 2024 election, showing a broader industry shift away from sustainability despite growing climate risks.

The problem: While investing in fossil fuels is a solid source of revenues, it also carries a long-term risk: losing Gen Z’s loyalty. This generation cares much more about financial institutions’ (FIs’) stances and commitments to what they consider moral issues, such as diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG).