Barclays has announced its decision to leave the Net-Zero Banking Alliance (NZBA), making it the second UK bank to withdraw from the United Nations-supported coalition aimed at promoting global net-zero targets through financial activities. This follows HSBC’s exit last month.
The exits of Barclays and HSBC align with the departure of major Wall Street banks and Canadian counterparts earlier this year. These exits have been influenced by significant pressure, particularly from U.S. Republican politicians, who have warned financial institutions of potential legal issues arising from their participation in climate-focused alliances. There have also been threats to exclude such companies from state business as part of a broader anti-ESG political campaign. Other prominent banks, including Australia’s Macquarie and Japan’s Sumitomo Mitsui, have also recently left the alliance.
In its announcement, Barclays stated that with the exit of most global banks, the NZBA no longer has the membership needed to support its transition. However, the bank reaffirmed its commitment to achieving net-zero status by 2050. Barclays aims to mobilise $1 trillion in sustainable and transition finance by 2030 and maintain its financed emissions targets. Earlier this week, the bank reported earning approximately £500 million (USD$660 million) in revenues from sustainable and transition finance activities in 2024, with cumulative volumes reaching $220.2 billion towards its $1 trillion goal, and activity accelerating in the first half of 2025.
Barclays emphasised its continued work with clients on their transition efforts, financing the transition, and scaling climate technology while ensuring energy security.
This decision represents another setback for the NZBA, even after its members agreed in April 2025 to significant changes to the alliance’s framework, including removing the requirement for banks to align lending and capital markets activities with the 1.5°C global warming target.
An NZBA spokesperson stated that the alliance remains focused on its future vision, supporting member banks in overcoming barriers to investing in the net-zero transition. As a leading global initiative for climate mitigation by banks, the NZBA is positioned to provide practical support for banks to seize opportunities and manage risks associated with the move to net zero.
Sustainable investment groups criticised Barclays’ decision. Jeanne Martin, Co-Director of Corporate Engagement at ShareAction, described it as “incredibly disappointing and a step in the wrong direction.” Martin stressed the importance of not taking half-measures as global heating risks and climate impacts become more severe and frequent. She noted that responsible investors would closely monitor Barclays and increase pressure to protect long-term economic prosperity and livelihoods.
