What is the Future of the NZBA?
The Net Zero Banking Alliance (NZBA) has announced that it may be transitioning to a guidance framework initiative at the end of September, depending on members' votes.
This follows the departure of various banks around the world including HSBC and Barclays.
In the meantime, NZBA has paused its ongoing activities until the voting process is complete.
The organisation said in a statement: "The Steering Group believes this is the most appropriate model to continue supporting banks across the globe to remain resilient and accelerate the real economy transition in line with the Paris Agreement, as well as to continue engagement with the global banking industry to develop further guidance and tools needed to support them and their clients.
"Recognising there is major opportunity for banks and key stakeholders to build on the Alliance’s outputs and to accelerate action on key priorities, NZBA encourages the banking sector to remain steadfast in implementing their net zero commitments."
How did the NZBA support banks?
The NZBA is a global initiative encouraging banks to commit to aligning financing portfolios with net zero greenhouse gas emissions by 2050.
Those that participate in the alliance receive support and resources to set science base targets, develop strategies and make progress towards the stipulations in the Paris Agreement.
Some of the banks that are members of the alliance are:
- The Agricultural Bank of China
- Santander
- BNP Paribas
- Lloyds Banking Group
The alliance aims to signpost methodologies, resources and best practices around key areas like data management.
The alliance sets rules to abide by, like the need to align operational and financed emissions with net zero pathways to 2050, setting 20230 targets, banks must publish absolute emissions and emissions intensity annually.
Why would the NZBA be looking to change tactics?
In 2025 the NZBA saw a large exit from several banks in the United States such as JP Morgan Chase, Bank of America, Citigroup and Morgan Stanley.
This mass exit was alongside several major Canadian major banks like the Bank of Montreal, National Bank of Canada and CIBC.
These exits could be down to emerging desires for operational autonomy, legal exposure and growing regulatory and political pressure.
Why would the NZBA be looking to change tactics?
Alongside HSBC and Barclays, the NZBA saw exits in 2025 from several banks such as JP Morgan Chase, Bank of America, Citigroup and Morgan Stanley.
These exits could be down to emerging desires for operational autonomy, legal exposure and growing regulatory and political pressure.
With the withdrawal of various large banks this puts the NZBA in a difficult position, with Barclays leaving a statement reading "After consideration, we have decided to withdraw from the Net Zero Banking Alliance.”
“With the departure of most of the global banks, the organisation no longer has the membership to support our transition."
“Responsible investors will be watching closely and raising the pressure on the bank to protect long-term economic prosperity and the livelihoods of people everywhere.”
