Barclays exits Net Zero Banking Alliance

Barclays has announced its exit from the Net Zero Banking Alliance, following a similar move by HSBC last month.

The bank said the departure of most other global banks means "the organisation no longer has the membership to support our transition".

"We are committed to our ambition to be a net zero bank by 2050. Our targets to mobilise US$1 trillion of Sustainable and Transition Financing and for financed emissions remain unchanged. We continue to work with our clients on their transition, finance the transition and scale climate tech, while helping to ensure energy security for our customers and clients," it added in a statement.

Earlier this week, Barclays' Group Head of Sustainable and Transition Finance Daniel Hanna told Reuters that it has made £500 million ($666.20 million) in revenue from sustainable and low-carbon transition finance in 2024 – adding that it would maintain its net zero target by 2050.

But Barclays is also one of four banks to have increased their financing to the fossil fuel sector in 2024.

'Mixed signals to governments and companies'

Reacting to Barclays’ decision, Jeanne Martin, Co-Director of Corporate Engagement at responsible investment at NGO ShareAction, said: "Barclays' decision to leave the NZBA is incredibly disappointing and a step in the wrong direction at a time when the dangers of climate change are rapidly mounting.

"The announcement comes just three days after Barclays published a transition update reiterating its commitment to be a net zero bank by 2050, sending mixed signals to governments and companies around the world."

Barclays' transition update, published this week, omitted any reference to the Net Zero Banking Alliance.

"As the financial risks of global heating multiply and climate impacts like heatwaves, floods and extreme weather events become more intense and frequent, we cannot afford half-measures. Responsible investors will be watching closely and raising the pressure on the bank to protect long-term economic prosperity and the livelihoods of people everywhere," Martin added.

HSBC's departure from Net Zero Banking Alliance

Last month, HSBC also decided to leave the Net Zero Banking Alliance, sparking fears that other UK banks would follow. In response green economy companies in the UK decided to take their business elsewhere, noting how important it is to choose a financier aligned with their purpose and climate goals.