Barclays, HSBC Exit Net-Zero Banking Alliance Amid Industry Withdrawals

Barclays has become the latest major bank to withdraw from the United Nations-backed Net-Zero Banking Alliance (NZBA), following HSBC and several prominent US banks, citing the diminishing membership and effectiveness of the alliance after many global banks exited. The NZBA recently softened its climate targets, moving from mandatory 1.5°C-aligned goals to more voluntary guidance aiming to keep warming below 2°C, a shift that contributed to growing discomfort among members. Despite leaving NZBA, Barclays reaffirmed its commitment to achieving net-zero emissions by 2050 and maintaining its goal to mobilize $1 trillion in sustainable and transition financing by 2030. The wave of departures has been linked to political shifts, including President Donald Trump’s return to office, which has led to reduced ESG (environmental, social, and governance) regulatory pressures and climate initiatives in the US and UK. Industry voices, such as Standard Chartered's CEO, have criticized the retreat from climate commitments, emphasizing the importance of sustained efforts. Overall, Barclays and other banks appear to be recalibrating their climate strategies amid changing political and economic landscapes while continuing to pursue sustainability goals independently.