Barclays has become the second UK bank to leave the industry's global alliance for setting climate targets. The lender announced it would be leaving the Net Zero Banking Alliance (NZBA) on Friday after "the departure of most of the global banks".
HSBC became the first British institution to leave the alliance earlier this month in the wake of several major US banks. Campaigners called Barclays' decision to step away "incredibly disappointing" as it marks a fresh blow to international efforts to co-ordinate climate action.
Alliance loses global membership
Assembled in 2021 by the UN Environment Programme's finance initiative but led by banks, the NZBA commits members to align their lending, investment and capital markets activities with cutting planet-warming greenhouse gas emissions to net zero by 2050. In a statement published online on Friday, Barclays said: "After consideration, we have decided to withdraw from the Net Zero Banking Alliance."
"With the departure of most of the global banks, the organisation no longer has the membership to support our transition," the bank added. The bank said it remains committed to its ambition to be a net zero bank by 2050 as well as its targets to cut financed emissions, and to mobilise one trillion US dollars of sustainable and transition financing.
Bank maintains climate commitments
"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," the lender said. "This is an important commercial opportunity for Barclays; in 2024, we generated approximately half a billion pounds in revenues from sustainable and transition-related activity."
The bank made the announcement three days after it published an update to its climate transition plans, which reiterated its green commitments. Jeanne Martin, co-director of corporate engagement at ShareAction, which campaigns for responsible investment, said Friday's announcement has therefore sent "mixed signals" to governments and companies around the world.
Mixed signals to markets
"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," she said. "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. The corporate world's retreat from diversity policies and green commitments has accelerated since Donald Trump's return to the White House.
Trump effect accelerates retreat
Six of the largest US banks - JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs - all left the NZBA following his election in November. But UK banks had stuck with the alliance until HSBC announced its departure this month.
With Barclays now leaving, British lenders listed as NZBA members as of Friday afternoon still include Lloyds, NatWest, Standard Chartered and Nationwide. The alliance said its members have been making "important progress" with well over 100 banks setting individual and independent science-based targets for their financed emissions.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
