HSBC, The U.K.-based bank, became the latest to exit the United Nations-backed NZBA, following in the footsteps of Wall Street’s exodus from climate alliances.
In a move that marks the first major UK bank to exit the UN-backed Net-Zero Banking Alliance (NZBA), HSBC announced on June 27 that it would withdraw from the coalition aimed at aligning banks’ financing with global net-zero goals. The decision echoes departures by North American peers and reignites questions about the institution’s dedication to its 2050 net-zero ambition.
RELEVANT SUSTAINABLE GOALS
A First Among UK Banks
HSBC, a founding member of the NZBA since 2021, joins a roster of withdrawals that began shortly after the 2020 U.S. presidential election. Republican-led legal threats and anti-ESG campaigns prompted Goldman Sachs and every major Wall Street bank to depart the alliance, followed by Canada’s big banks in January and Australia’s Macquarie and Japan’s Sumitomo Mitsui more recently. Despite its exit, HSBC reaffirmed in a statement that it “remains resolute” in achieving net zero by 2050 and “supporting our customers to finance their transition objectives.”
The exodus from the NZBA was driven in part by U.S. Republican politicians warning financial institutions of potential legal violations and exclusion from state business over climate-focused commitments. HSBC’s departure underscores how geopolitical and regulatory pressures can strain global climate coalitions, even as banks publicly uphold long-term decarbonization goals.
Revised NZBA Framework Fails to Halt Departures
In April 2025, NZBA members approved significant amendments—most notably dropping the mandatory requirement to align lending and capital-markets activities with the 1.5°C warming limit. The alliance’s spokesperson highlighted recent efforts on policy engagement and transition finance designed to “increase understanding and accelerate progress.” Yet, these reforms proved insufficient to retain HSBC, suggesting lingering skepticism about the alliance’s practical impact.
Sustainability-focused groups have voiced alarm. Earlier this year, HSBC delayed its 2030 operational and supply-chain net-zero target to 2050 and placed interim financed-emissions goals under review, citing a “slower than envisioned” pace of global decarbonization. In May, investors holding $1.6 trillion under management urged the bank at its AGM to restate its net-zero commitments. ShareAction’s Co-Director Jeanne Martin condemned the NZBA exit as “a troubling signal” that undermines the urgency of addressing climate risks such as heatwaves, floods and extreme weather.
Engaging GFANZ and Future Strategy
While stepping back from NZBA, HSBC said it will maintain engagement with the Glasgow Financial Alliance for Net Zero (GFANZ), which is refocusing on mobilizing capital for low-carbon transitions. The bank emphasized a pragmatic, sector-by-sector approach: “Our strategy is to provide our customers with pragmatic financing solutions that facilitate their progress and support long-term emissions reduction while advancing energy security and meeting the economic and industrial needs of today’s economy.”
As HSBC charts a course beyond the NZBA framework, its commitment to net zero 2050 remains intact on paper—but stakeholders and the public will be watching whether the bank’s financing activities align with the bold targets it still professes to uphold.
HSBC added :
“We continue to support customers in all sectors to make progress towards their individual decarbonisation plans, recognising that the transition to net zero is not linear or uniform across sectors, markets, and regions. Our strategy is to provide our customers with pragmatic financing solutions that facilitate their progress and support long-term emissions reduction while advancing energy security and meeting the economic and industrial needs of today’s economy.”
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