NZBA loses another major member as Swiss bank UBS withdraws

UBS has left the Net Zero Banking Alliance (NZBA), following a mass exodus from major banks in the US, Canada, UK and Australia.

The Swiss bank, which recently appointed Christian Leitz as its new Chief Sustainability Officer, joined NZBA as a founding member in 2021, but has now decided to withdraw, “like a number of [its] global peers”.

“UBS recognises the NZBA’s valuable role in helping banks establish initial target-setting frameworks. With that work advanced and with our in-house capabilities strengthened, we have decided to withdraw from the NZBA,” UBS said in a statement last week. 

Just a few days before, it was UK bank Barclays that announced its exit from the alliance, citing the departure of many of its peers – including HSBC – as one of the reasons behind the decision.

NZBA ‘remains focused’

Most Wall Street banks left NZBA at the start of this year, following Donald Trump’s presidential election victory and a shift to anti-ESG policies in the US. They were quickly followed by neighbouring banks in Canada, and then Australia. 

It only took a few more months for the trend to reach Europe, despite NZBA’s decision in April to soften climate target requirements in a bid to appease remaining members.

In response to UBS' departure, an NZBA spokesperson told CSO Futures: “NZBA’s strength lies in the commitment of its member banks to lead the net zero transition. As part of the Alliance, members have the unique opportunity to uphold their ambition and shape the banking sector’s response to the climate crisis, ultimately making the transition more feasible and attractive.

“As such, as the largest global initiative specifically focused on supporting climate mitigation action by banks, NZBA's purpose and impact goes far beyond helping member banks execute their individual net-zero strategies.

“NZBA is uniquely positioned to help the sector more broadly identify, pilot and institutionalise credible decarbonisation pathways and to advocate for supportive systemic change at the policy, regulatory and institutional levels. Moreover, NZBA helps provide the sector with the technical support, guidance and tools that its clients need to accelerate their own low-carbon transitions, all whilst enhancing the risk profile, commercial opportunities and financial resilience of banks themselves. This is long-term work that requires courage, consistency and true leadership to stay on track, even when faced with barriers to action.

“As we look ahead, NZBA remains focused on supporting the many committed banks that are leading this transformation and driving change at a pace that cannot be achieved alone. The need for bold, resolute action from the banking sector has never been greater and NZBA is here to help deliver it.”

UBS’ recent changes in climate strategy

UBS initially announced a target to achieve net zero operational emissions by 2025 and cut portfolio emissions for ​​fossil fuels, power generation and real estate by 43% by 2030.

But in March 2025, the bank delayed its operational emissions target until 2035, citing its acquisition of Credit Suisse as the reason. At the same time, it also removed ESG-linked compensation for its executives.

“Clients remain at the heart of what we do as we support them in the transition. We remain steadfast in our commitment to be our clients’ bank of choice and support them with offerings that meet their evolving needs. We remain focused on supporting our clients in understanding the impact of climate change in their business models and their investments, including both risks and opportunities. We continue advancing our multi-year initiative to embed sustainability and climate risk into our risk management and stress-testing frameworks,” the bank said upon announcing its departure from the climate alliance.