HSBC Becomes First Major UK Bank to Exit Net-Zero Banking Alliance

HSBC has withdrawn from the Net-Zero Banking Alliance, becoming the first major UK bank to leave the UN-backed coalition, following a series of North American and other global peers that have departed the group amid political pressure particularly from the United States. Despite its NZBA exit, HSBC has reiterated its commitment to pursuing net zero by 2050.

HSBC joined the NZBA as a founding member in 2021 but announced its departure following a wave of exits that began with Goldman Sachs and eventually included every major Wall Street bank, all major Canadian banks and several others including Australia's Macquarie and Japan's Sumitomo Mitsui. The series of departures has been driven in large part by pressure from US Republican politicians warning financial institutions of potential legal violations from participating in climate-focused alliances. In April 2025, the NZBA made significant changes to its framework, including eliminating a mandatory requirement for members to align lending activities with the 1.5°C warming limit.

HSBC's departure follows a series of concerning signals regarding its climate commitments, including pushing back its 2030 net zero operations and supply chain target by 20 years to 2050 earlier in 2025, placing interim financed emissions targets in key carbon-intensive sectors under review, and the departure of its Group Chief Sustainability Officer from the Group Executive Committee. At the company's May 2025 AGM, investors representing $1.6 trillion in assets under management led by ShareAction called on HSBC to restate its net zero commitments. Departing chairman Mark Tucker confirmed the bank's 2050 goal while acknowledging climate targets were proving harder to reach.

HSBC stated it will remain engaged with the Glasgow Financial Alliance for Net Zero and will 'continue to support customers in all sectors to make progress towards their individual decarbonisation plans.' For India, where HSBC is a significant banking presence and a major financier of industrial and infrastructure development, the bank's commitment to maintaining its customer-facing climate support despite its NZBA exit will be closely watched. ShareAction's Jeanne Martin described the exit as '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.'

Key figure — $1.6 trillion in assets under management represented by investors who called on HSBC at its May 2025 AGM