Barclays quits net zero banking alliance amid growing global departures
- Barclays has withdrawn from the Net Zero Banking Alliance, following the departure of HSBC.
- The bank cited the exit of other major global banks as a reason for its decision.
- Environmental activists have expressed disappointment, emphasizing the need for ongoing climate action.
In the United Kingdom, Barclays has become the second bank to exit the Net Zero Banking Alliance (NZBA), echoing a trend initiated by major US banks. This decision, announced on a Friday in August 2025, followed the earlier departure of HSBC, marking a notable shift in the banking sector's commitment to climate action. The NZBA, established in 2021 by the UN Environment Programme’s finance initiative, aimed to align banking practices with global climate goals. Barclays stated that the departure of multiple global banks diminished the effectiveness of the alliance. Despite this exit, Barclays reiterated its commitment to achieving net zero emissions by 2050 and mobilizing significant financing for sustainable initiatives. The bank's announcement comes in the context of increasing frustration among environmental campaigners. Many view the decision as disheartening, especially as climate change becomes an urgent global issue. Jeanne Martin, from the corporate engagement organization ShareAction, expressed her disappointment, suggesting that the move sends mixed messages at a time when climate risks, such as extreme weather events, are becoming increasingly severe. This corporate retreat raises concerns about the financial sector's commitment to climate goals, given that the departure of Barclays and HSBC follows a similar pattern among major US banks such as JP Morgan and Goldman Sachs, who had previously left the alliance following significant political changes. Barclays highlighted the financial opportunities associated with sustainable and transition-related activities, claiming it generated significant revenue in 2024 from these efforts. However, the decision to leave the NZBA has sparked calls for the bank to maintain its focus on environmental responsibility, with pressure mounting from responsible investors who advocate for long-term economic stability and the protection of livelihoods challenged by climate change. As Barclays steps back from its formal ties to the NZBA, the remaining UK banks within the alliance include Lloyds, NatWest, Standard Chartered, and Nationwide. The NZBA maintains that its members have been making important strides, with over 100 banks setting independent, science-based targets for financed emissions. Yet, the departure of key players raises questions about the future effectiveness and influence of the NZBA in driving necessary climate action through financial channels.