· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on ESG Today or enjoy below:
🗞️ Driving the news: Barclays has exited the UN-convened Net-Zero Banking Alliance (NZBA), becoming the second major UK bank to do so after HSBC's withdrawal last month
• The bank cited the departure of most global banks from the coalition as the reason, stating the NZBA "no longer has the membership to support our transition"
• Despite leaving the alliance, Barclays reiterated its net-zero commitment and disclosed it has mobilized over $220 billion toward its $1 trillion sustainable finance goal
🔭 The context: The NZBA, launched in 2021 under the UN’s Race to Zero campaign, aimed to align banks' lending and investment portfolios with net-zero emissions by 2050
• However, a wave of withdrawals — primarily from US, Canadian, Australian, and now UK institutions — has followed mounting political backlash, particularly from US Republican lawmakers opposing ESG initiatives
• In April 2025, the alliance weakened its requirements to retain membership, but it wasn’t enough to stem the exodus
🌍 Why it matters for the planet: These high-profile exits risk undermining the credibility and collective action potential of voluntary climate finance coalitions
• While individual net-zero commitments remain in place, the lack of coordinated frameworks could fragment global progress
• The shift also raises concerns about the influence of political agendas on corporate climate alignment, especially in key financial markets
⏭️ What's next: Attention now turns to whether remaining NZBA members can sustain momentum and credibility in the face of reduced participation from major global banks
• Regulatory bodies and climate-conscious investors may ramp up scrutiny on banks making unilateral net-zero pledges without transparent third-party verification
• Political pressures against ESG finance are expected to intensify ahead of the 2026 U.S. midterm elections, likely influencing future bank disclosures and alliances
💬 One quote: “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.” – Jeanne Martin, ShareAction
📈 One stat: Barclays has mobilized $220.2 billion toward its $1 trillion sustainable and transition finance target, earning £500 million in related revenues in 2024 alone
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