Net Zero Banking Alliance closes down after mass exodus

The Net Zero Banking Alliance has announced that it will immediately cease operations after its remaining members voted to transform it into a framework initiative.

NZBA published a statement in August explaining that, following the departure of many high-profile members, it would ask banks remaining in the network to vote on a proposed transition to a new framework initiative simply sharing guidance on how banks can contribute to the climate transition.

Members have voted in favour of this shift, effectively ending the four-year run of the membership-based alliance that required members to commit to climate targets, and casting doubts over the future of banks’ climate commitments.

‘Senior bankers need to be far more courageous’

Jeanne Martin, co-Director of Corporate Engagement at ShareAction said:“It’s bitterly disappointing to see the biggest banks in the world vote to step away from accountability around their commitments to prevent the worst effects of global heating.

“Despite some governments and corporates dialling down on their efforts to tackle the climate crisis, public support for climate action remains high and many investors are all too conscious of the massive risks to the economy of a worsening climate. Senior bankers need to be far more courageous in this decisive moment for all our futures and must use their influence to push up standards for accountability on climate if we are to stand any chance of making the clean energy transition happen.”

Net Zero Banking Alliance: A timeline

Launched at COP26 in 2021, the Net Zero Banking Alliance brought together 43 founding banks with assets of US$28.5 trillion behind a commitment to “align operational and attributable emissions from their portfolios with pathways to net-zero by 2050 or sooner”.

Any bank who joined the alliance had 18 months to set 2030 targets for the decarbonisation of their financed emissions, starting with high-emitting sectors and then aligning their entire portfolios to net zero by 2050.

Founding members included Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, Morgan Stanley and UBS. By October 2024, the alliance counted 122 members – 97% of which had set their climate targets.

But in December 2024, on the back of Donald Trump’s reelection as US President, things took a turn. Goldman Sachs was the first to exit as Trump’s and conservative states’ anti-ESG policies started to take hold – and was promptly followed by all of Wall Street, top Canadian banks and some Australian peers. By July 2025, the NZBA exodus reached the shores of Europe with HSBC, UBS and Barclays’ exit.