UBS, the Swiss banking and financial services group, announced its decision to withdraw from the Net-Zero Banking Alliance (NZBA), making it the first major European bank outside the UK to leave the UN-supported coalition. The NZBA aims to advance global net-zero goals through financial activities. This move by UBS follows the recent exits of UK-based banks HSBC and Barclays, as well as all major Wall Street banks and their Canadian counterparts earlier this year. UBS was a founding member of the NZBA, joining in 2021.
The exit aligns with UBS’s earlier decision to revise its climate goals, including delaying its target to achieve net-zero greenhouse gas emissions in operations by 10 years to 2035. It also withdrew its aim for its Asset Management division to align 20% of its assets under management with net-zero by 2030. These changes were attributed to its acquisition of Credit Suisse.
UBS has altered its climate commitments language in its sustainability report, moving from a specific net-zero ambition by 2050 to a broader reference to the global economy’s transition to net zero by 2050. Despite this, UBS confirmed its commitment to decarbonising financed emissions in specified sectors.
In its statement, UBS acknowledged the NZBA’s role in helping banks set initial targets but cited its advanced work and strengthened in-house capabilities as reasons for its exit. UBS reiterated its commitment to sustainability and an orderly transition to a low-carbon economy, emphasising its focus on supporting clients in understanding climate change impacts on their business models and investments.
The departure of banks from the NZBA follows significant pressure from Republican politicians in the U.S., who have warned financial institutions of potential legal issues related to climate-focused alliances. This pressure is part of a wider political campaign against ESG initiatives.
Following North American banks’ exits, the NZBA revised its framework in April 2025, dropping the mandatory requirement for banks to align their activities with the goal of limiting global warming to 1.5°C.
An NZBA spokesperson stated that the alliance’s strength lies in the commitment of member banks to the net-zero transition, emphasising the need for courage and leadership to overcome barriers. The NZBA remains focused on supporting committed banks in driving this transformation forward.