HSBC has become the first UK bank to exit the Net-Zero Banking Alliance (NZBA), despite being a founding member of the body back in 2021.
The moves comes after a number of US banks exited the body late last year and early 2025, on the back of Donald Trump becoming president.
The NZBA is a UN-backed climate coalition launched as part of the Glasgow Financial Alliance for Net Zero (GFANZ), with the aim of aligning global banking activity with net-zero emissions by 2050.
In a statement, HSBC said: “In 2020, HSBC was one of the first global banks to set a net zero by 2050 ambition. We remain resolute in this long-term ambition and in supporting our customers to finance their transition objectives.”
And it added: “The Net Zero Banking Alliance played a role in developing guiding frameworks to help banks establish their initial target-setting approach.
“With this foundation in place, and as we work towards updating and implementing our Net Zero Transition Plan later in 2025, we, like many of our global peers, have decided to withdraw from the NZBA. We continue to remain engaged with the Glasgow Financial Alliance for Net Zero to support the mobilisation of capital towards the net zero transition.”
Jeanne Martin, co-director of corporate engagement at responsible investor campaign group Share Action, commented: “We strongly condemn HSBC’s decision to leave the NZBA, which is yet another troubling signal around the bank’s commitment to addressing the climate crisis. It sends 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.”
She added that: “Shareholders with £1.2 trillion in assets under management called on the bank just weeks ago to continue to reaffirm and build on its existing climate progress, rather than backtracking on ambition to protect the long-term prosperity of the economy and the livelihoods of people around the world. Investors will be watching closely how this backsliding move will translate into its disclosures and policies.”
Comments