In Short

• The bank is still committed to its 2050 net-zero goal.
• The departure of other top banks may have influenced their decision.
• Barclays, one of the UK’s biggest banks, has announced that it is exiting the Net Zero Banking Alliance (NZBA).

This alliance was created by the United Nations Environment Programme Finance Initiative to bring banks together to support the transition to a net-zero carbon economy, meaning they aim to reduce emissions to help tackle climate change.

However, Barclays now believes that the group is no longer effective, especially after several major global banks, including HSBC and big U.S. lenders, also left.

Despite leaving the NZBA, Barclays said its commitment to reaching net zero by 2050 remains unchanged. The bank said that it still sees a business opportunity in supporting its clients through the energy transition—the shift from fossil fuels to cleaner energy sources. As part of its updated sustainability strategy, Barclays revealed that it made £500 million (around $666 million) in revenue in 2024 from low-carbon and sustainable finance.

Read More: NBIM Urges Banks to Reveal Businesses Excluded from Emissions Data

But, the decision drew criticism. ShareAction, a responsible investment NGO, called Barclays’ move “incredibly disappointing”, especially at a time when climate risks are growing. They see it as a step backwards from corporate responsibility in addressing climate change.

Barclays explained that the NZBA was no longer “fit for purpose” because it had lost many of its influential members. Without strong participation, Barclays felt the group couldn’t effectively support its green transition.

Although the NZBA still lists over 100 member banks on its website, its influence has weakened. Earlier this year, it was forced to relax some of its strict membership rules in response to the wave of exits.

Also Read: Climate Risks 'Deprioritised' Under Bailey, Say Former BoE Staff

A spokesperson for the NZBA said the alliance is still focused on helping its members address challenges that stop their clients from investing in net-zero strategies, showing it still aims to play a role despite recent setbacks.

Ends/

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Source: Reuters