Barclays Follows HSBC in Withdrawing from UN’s Net-Zero Banking Alliance

UK lenders exit global climate finance coalition as membership fragments

Barclays and HSBC have both exited the Net-Zero Banking Alliance (NZBA), a United Nations–convened coalition that aimed to align global banking with climate goals. The decision follows similar moves from several major U.S. banks earlier in 2025, weakening the alliance’s reach and raising questions about the future of coordinated climate action within the financial sector.

Barclays cites declining participation and shifting industry priorities

In a formal statement, Barclays announced its departure, noting that the alliance had “changed significantly” since its formation. The bank pointed to the withdrawal of numerous major international lenders—especially those in the U.S.—as a key factor in its decision. With the exit of banks representing a substantial share of the financial sector, Barclays said it no longer saw the NZBA as a viable forum for developing common climate standards.

However, Barclays reaffirmed its internal net-zero targets, including its aim to become a net-zero bank by 2050 and its strategy to support clients in reducing their emissions. The bank reiterated its intention to disclose progress transparently and align its climate approach with shareholder expectations and regulatory standards.

HSBC exit adds to UK banking sector retreat

Just days prior, HSBC confirmed it was also withdrawing from the NZBA. The lender cited a preference to independently pursue its net-zero strategy and expressed a desire for flexibility in responding to evolving client needs. HSBC’s exit marks a significant shift, given the bank’s size and earlier climate finance commitments within the alliance.

The twin departures of Barclays and HSBC mean two of the UK’s largest banks have now severed formal ties with the UN-backed initiative, raising concern about the momentum behind global climate finance collaboration.

NZBA faces growing scrutiny amid strategic divergence

The NZBA was established to encourage banks to align their lending and investment portfolios with the goal of limiting global temperature rises to 1.5°C. However, the alliance has faced increasing pressure from both sides of the political spectrum—criticised by climate advocates for lacking enforcement and by some governments and business groups for overstepping on policy influence.

In response to external pressures and internal tensions, the alliance has relaxed some of its requirements in recent months, including loosening expectations around emissions targets. Critics argue that these changes have diluted the NZBA’s original purpose and made it harder to enforce robust climate standards.

Uncertainty ahead for global climate banking frameworks

With the exits of Barclays, HSBC, and major U.S. institutions such as JPMorgan Chase and Bank of America, the Net-Zero Banking Alliance has lost much of its weight among the world’s largest financial actors. The fragmentation signals a growing reluctance among banks to remain tied to collective frameworks perceived as inflexible or politically contentious.

Whether this trend reflects a tactical retreat or a broader shift away from coordinated climate action in banking remains to be seen. For now, both Barclays and HSBC claim they remain committed to climate targets—just no longer under the umbrella of the NZBA.