Barclays Exits Net-Zero Banking Alliance as Major Bank Withdrawals Continue

Barclays announced it is leaving the Net-Zero Banking Alliance, becoming the second major UK-based bank to exit the UN-backed coalition after HSBC's departure last month. The withdrawal follows the exit of all major Wall Street banks and their Canadian peers, with departing members citing the coalition's diminished membership base.

Barclays stated that with the departure of most global banks, the NZBA no longer has the membership to support the coalition's transition. The bank reiterated its commitment to achieving net zero by 2050, maintaining its $1 trillion sustainable and transition finance target by 2030 and its financed emissions reduction goals. In its most recent sustainability update released this week, Barclays reported £500 million in sustainable finance revenues in 2024 and $220.2 billion in cumulative progress toward its $1 trillion goal.

The NZBA has experienced a wave of departures particularly since the election of President Trump, driven largely by pressure from Republican politicians who have warned financial institutions of potential legal violations from participation in climate-focused alliances and threatened exclusion from state investment mandates. Other recent departures include Australia's Macquarie and Japan's Sumitomo Mitsui. The departures come even after the NZBA agreed in April 2025 to significant framework changes, including eliminating the mandatory requirement for banks to align with a 1.5°C warming scenario.

The NZBA stated it remains focused on delivering its future vision and supporting member banks to lead on climate by addressing barriers preventing clients from investing in the net-zero transition. Sustainable investment groups including ShareAction criticised Barclays' exit as a step in the wrong direction as financial risks of global heating multiply. For Indian banks tracking the trajectory of global banking climate commitments, the accelerating NZBA departures reflect the difficult balance between climate commitments and regulatory and political pressures in key markets.

Key figure — All major Wall Street banks, Canadian peers, HSBC and now Barclays have exited the NZBA