• Barclays exits Net-Zero Banking Alliance, citing a collapse in membership
• Follows similar moves by HSBC and major US banks
• Bank reaffirms $1 trillion sustainable finance goal by 2030
• Reports £500m in 2024 low-carbon revenue and £508m in climate tech investments
• Environmental groups highlight Barclays' $35.4bn fossil fuel financing in 2023
• ShareAction calls exit "incredibly disappointing" and a step backwards
• NZBA defends relevance and updated guidelines post-US exits
• Triodos Bank previously left following loosening of membership standards
• Climate advocates say Barclays’ signals are mixed and damaging
• Financial sector’s net-zero commitments face mounting credibility challenges

Barclays has become the latest major bank to withdraw from the Net-Zero Banking Alliance (NZBA), a United Nations-backed coalition formed to align the financial sector with the goal of achieving net-zero carbon emissions by 2050.

The UK-based bank confirmed its exit on Friday, citing the recent collapse of membership among global financial institutions as a key factor. 

“With the departure of most of the global banks, the organization no longer has the membership to support our transition,” Barclays said in a statement.

Barclays follows HSBC, which announced its own departure from NZBA last month. These moves mirror an earlier exodus by several US-based banks, driven in part by political pressure and changing federal policy under the Trump administration.

Despite the withdrawal, Barclays reiterated its sustainability goals. The bank confirmed its $1 trillion commitment to sustainable and transition finance by 2030 remains unchanged.

“We continue to work with our clients on their transition, finance the transition and scale climate tech, while helping to ensure energy security,” it stated.

Just days before announcing its exit, Barclays reported £500 million in 2024 revenues from sustainable and low-carbon transition activities. Since 2020, the bank has facilitated £508 million in investments in climate technology and innovation through its dedicated climate arm.

However, its climate credentials are being challenged. A recent report by environmental groups, including the Rainforest Alliance Network and Sierra Club, identified Barclays as Europe’s largest financier of fossil fuels in 2023. 

The bank increased its fossil fuel financing by over 55% to $35.4 billion, placing it among the top four global banks in expanded fossil fuel support alongside JPMorgan Chase, Bank of America, and Citi.

UK NGO ShareAction called Barclays' exit from NZBA “incredibly disappointing.” Jeanne Martin, co-director of corporate engagement at the group, said the decision sends “mixed signals” just days after the bank reaffirmed its net-zero commitment.

“The announcement comes just three days after Barclays published a transition update reiterating its commitment to be a net zero bank by 2050,” Martin noted. “It’s a step in the wrong direction at a time when the dangers of climate change are rapidly mounting.”

In response, NZBA emphasized its ongoing relevance. A spokesperson told ESG Dive that the alliance “remains focused on delivering on the future vision overwhelmingly endorsed by member banks a few months ago.” The organization, they said, continues to provide critical support for climate risk management and mitigation across the banking sector.

In April, NZBA revised its membership criteria after multiple North American banks exited the group. 

The new guidelines removed a requirement for banks to align their portfolios with a 1.5°C climate scenario – a move that led to further resignations, including that of Triodos Bank in the Netherlands.

Barclays' departure adds to a growing list of high-profile exits that threaten to unravel the credibility of voluntary net-zero frameworks within the financial industry