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Barclays has quit a global climate alliance of top banks, the second big European lender to do so following an exodus of Wall Street peers.
The Net-Zero Banking Alliance (NZBA), which launched more than four years ago, has battled to retain its members following the election of US President Donald Trump, who has described climate change as a “hoax”.
Barclays had discussed its possible exit from the umbrella group and was considering investors’ responses to a decision by HSBC to exit last month, the Financial Times previously reported.
“With the departure of most of the global banks, the organisation no longer has the membership to support our transition,” Barclays said in a statement on Friday.
The bank said it remained committed to its plan to reach net zero emissions by 2050. It put the level of revenue from “sustainable and transition-related activity” at about £500mn last year, and said it considered the energy transition “an important commercial opportunity”.
Barclays was the largest fossil fuel financier in Europe last year, boosting its activities by 55 per cent to $35.4bn, according to an annual report by climate campaigners.
Jeanne Martin, co-director of corporate engagement at responsible investment non-profit organisation ShareAction, said the move was “a step in the wrong direction at a time when the dangers of climate change are rapidly mounting”.
The NZBA was founded by global banks in 2021 as they outlined efforts to support the alignment of the global economy with a 2015 Paris Agreement target to limit global warming to 1.5C above pre-industrial levels.
But its members voted in April to ditch this pledge in favour of a less stretching target to limit warming to 2C, also enshrined in the Paris Agreement.
The NZBA said on Friday that it would remain focused on delivering the “future vision overwhelmingly endorsed” by members in the vote.
“As the largest global initiative specifically focused on supporting climate mitigation action by banks, [it] is uniquely positioned to provide the practical support banks need to grasp the opportunities and manage the risks of the move to net zero.”
Additional reporting by Ortenca Aliaj
Climate Capital
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