HSBC and Barclays Quit, Sealing Fate of Embattled Net Zero Banking Group

The Net Zero Banking Alliance (NZBA), a global coalition for climate action within the financial sector, has officially ceased to exist. The group announced its immediate closure after a series of devastating departures, culminating in the recent exit of British banking titans HSBC and Barclays, rendered its mission unachievable.
The alliance had been on life support for months, a decline that started with a dramatic political shift in the United States. Donald Trump’s re-election on a promise to “drill, baby, drill” unleashed a wave of “anti-woke” sentiment from right-wing politicians, placing a target on the backs of companies with strong environmental, social, and governance (ESG) commitments.
Faced with this hostile environment, America’s six largest banks, including JPMorgan Chase and Goldman Sachs, made a calculated decision to leave the NZBA late last year. Their exodus created a catastrophic loss of momentum and influence, from which the alliance would never recover. It was a clear signal that domestic political pressures were overriding international climate cooperation.
After the US pullout, other international members began to quietly slip away. However, the public withdrawals of HSBC and Barclays this summer were a decisive blow. HSBC’s departure was particularly significant, as the bank had already been accused of backsliding on its climate promises by delaying key targets by 20 years.
The collapse has been met with a mix of despair and vindication. Sustainable investment groups like ShareAction called it a “bitterly disappointing” moment, a testament to the lack of fortitude in the banking industry. But critics from organizations like Reclaim Finance were unmoved, asserting that the NZBA was a flawed, “doomed” venture that provided cover for inaction. They now argue that the focus must shift entirely to forcing change through government regulation.