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UBS has withdrawn from the United Nations-backed Net-Zero Banking Alliance, the bank announced Thursday. The bank is the latest to depart the climate group, following a flurry of exits from North American and U.K.-based financial institutions this year.
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The Swiss bank said it made the decision to exit NZBA following an annual review of its sustainability and climate-focused memberships. UBS said its “ambition to being a leader in sustainability is unchanged” and that it will continue to “progress [its] sustainability and impact strategy,” in an Aug. 7 statement posted on its website.
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UBS’s departure comes shortly after British banks HSBC and Barclays announced their respective retreats from the climate-focused sector coalition. The alliance’s members commit to aligning their financial activities with the goal of reaching net-zero emissions by 2050.
UBS was a founding member of the NZBA in 2021. The financial institution said on Thursday it joined at a time when banks were working to cultivate decarbonization frameworks for financed emissions. Since then, the bank said it has developed and advanced its in-house capabilities in the area, but lauded NZBA for playing a “valuable role in helping banks establish initial target-setting frameworks.”
Earlier in March, UBS shared in its annual sustainability report that it had delayed its target to reach net-zero emissions across its own operations from 2025 to 2035. At the time, the bank attributed the delay to its “enlarged corporate real estate portfolio,” following an acquisition of Credit Suisse, and updated regulatory guidance.
The deferred decarbonization timeframe came a month after HSBC announced it was delaying its net-zero emission goal by 20 years, from 2030 to 2050.
UBS’ latest sustainability report also dropped references that linked executive compensation to ESG targets. Previous reports tied executives’ pay to goals like reducing emissions in sectors including real estate, power and cement.
“We support our clients in the transition to a low-carbon world and consider climate change risks and opportunities across our bank for the benefit of our clients, investors and all our stakeholders,” UBS said in its statement announcing the NZBA departure.
An NZBA spokesperson told ESG Dive Thursday the alliance’s “strength lies in the commitment of its member banks to lead the net zero transition.”
