HSBC has announced its decision to withdraw from the Net-Zero Banking Alliance (NZBA), making it the first major UK bank to leave the UN-backed coalition aimed at promoting global net zero goals through financial activities. Despite its exit, HSBC reiterated its commitment to achieving net zero by 2050, stating, “we remain resolute in this long-term ambition and in supporting our customers to finance their transition objectives.” HSBC was a founding member of the NZBA in 2021.
The departure marks the latest in a series of high-profile exits from the NZBA over recent months. Members have faced mounting pressure, particularly from Republican politicians in the United States, who have warned financial institutions about potential legal violations arising from their participation in climate-focused alliances. This pressure has been part of a broader anti-ESG political campaign, which has included threats to exclude these companies from state business.
Following the election of Donald Trump, several US-based banks began leaving the group, starting with [Goldman Sachs](https://www.goldmansachs.com/) and eventually including all major Wall Street banks. In January, all major Canadian banks announced their departure from the NZBA, with other significant exits following, including Australia’s [Macquarie](https://www.macquarie.com/) and Japan’s [Sumitomo Mitsui](https://www.smbc.co.jp/).
Recent months, however, have seen a slowdown in departures after NZBA members agreed in April 2025 to implement significant changes to the alliance’s framework and principles, such as removing the requirement for banks to align their lending and capital markets activities with the goal of limiting global warming to 1.5°C.
HSBC’s exit has raised concerns among sustainability-focused investor groups regarding the bank’s commitment to its climate goals. Earlier this year, HSBC announced a delay in its 2030 target for achieving net zero emissions in its operations and supply chain, now aiming for 2050. It also placed its interim targets for reducing financed emissions in key carbon-intensive industries under review, citing a “slower than envisioned” pace of global decarbonisation. Additionally, HSBC announced in November that its Group Chief Sustainability Officer, [Celine Herweijer](https://www.linkedin.com/in/celineherweijer/), would step down following a restructuring that removed the CSO from the bank’s Group Executive Committee.
At HSBC’s Annual General Meeting in May 2025, a group of investors managing $1.6 trillion in assets, led by responsible investing NGO [ShareAction](https://shareaction.org/), urged HSBC to reaffirm its net zero commitments, noting that recent actions by the bank have sent “deeply concerning signals” about its climate priorities. During the meeting, HSBC’s departing chairman Mark Tucker confirmed the bank’s commitment to becoming a net zero bank by 2050, acknowledging the challenges posed by the pace of change in the broader economy.
Following HSBC’s announcement to leave the NZBA, Jeanne Martin, Co-Director of Corporate Engagement at ShareAction, commented: “We strongly condemn HSBC’s decision to leave the NZBA, which is yet another troubling signal around the bank’s commitment to addressing the climate crisis. It sends a counterproductive message to governments and companies, despite the multiplying financial risks of global heating and the heatwaves, floods, and extreme weather it will bring.”
In its statement regarding the departure, HSBC affirmed its ongoing engagement with the Glasgow Financial Alliance for Net Zero (GFANZ) to “support the mobilisation of capital towards the net zero transition.” GFANZ, which initially served as an umbrella group for financial sector net zero coalitions including the NZBA, recently [announced a restructuring](https://www.gfanzero.com/) to focus on enabling the mass mobilization of capital to support the low carbon transition.
HSBC added, “We continue to support customers in all sectors to make progress towards their individual decarbonisation plans, recognising that the transition to net zero is not linear or uniform across sectors, markets, and regions. Our strategy is to provide our customers with pragmatic financing solutions that facilitate their progress and support long-term emissions reduction while advancing energy security and meeting the economic and industrial needs of today’s economy.”