Barclays has followed HSBC’s lead in exiting the Net Zero Banking Alliance (NZBA), citing a shift in the membership landscape as the primary reason for its withdrawal. The bank stated that the recent departures of several global lenders have diminished the alliance’s capacity to facilitate its transition goals.
Established in 2021, the UN-convened NZBA mandates its members to commit to aligning the operational and attributable greenhouse gas (GHG) emissions associated with their lending and investment portfolios to achieve net-zero by 2050 or sooner. The initiative once boasted a membership of around 150 institutions, including many of the world’s largest banks, but that number has significantly decreased in recent months.
At the beginning of 2025, in the lead-up to Donald Trump’s anticipated return to the White House, a wave of U.S. banks including JPMorgan, Bank of America, Citi, Goldman Sachs, Morgan Stanley, and Wells Fargo withdrew from the climate-focused alliance. Their exits came amid significant criticism from Republican lawmakers regarding what they term “woke” capitalism, with claims that financial environmental collaborations amount to the formation of a “climate cartel.”
Following suit, both HSBC and Barclays, headquartered in the UK, have abandoned the alliance. Barclays has reaffirmed its commitment to becoming a net-zero bank by 2050, stating in its announcement, “Our targets to mobilize $1 trillion in Sustainable and Transition Financing and to address financed emissions remain unchanged. We will continue collaborating with our clients on their transition, financing efforts, and scaling of climate technology, while also ensuring energy security for our customers.”
In a recent statement, Bill Winters, CEO of Standard Chartered, criticized banks that have reversed their climate commitments. He expressed disappointment in those who, during more favorable times, made ambitious statements but are now either silent or taking contrary positions.