UBS has exited the Net-Zero Banking Alliance (NZBA), joining a growing list of major banks distancing themselves from the climate-focused initiative.
The decision follows similar moves by Barclays, HSBC, JPMorgan, Citi, Morgan Stanley, Macquarie, and Bank of Montreal amid rising political and regulatory scrutiny.
UBS says it has developed internal sustainability capabilities, reducing the need for external frameworks like NZBA.
Swiss banking giant UBS has withdrawn from the Net-Zero Banking Alliance (NZBA), becoming the latest in a string of high-profile exits from the global climate finance initiative. The move comes during UBS’s annual review of its climate and sustainability-related memberships and raises further questions about the NZBA’s future.
“Although the NZBA provided valuable frameworks for initial target-setting, the bank has advanced its own capabilities and decided to leave,” UBS said in a statement.
UBS follows recent departures by Barclays and HSBC. Just last week, Barclays cited the wave of global exits as a key factor, stating the NZBA is “no longer fit” to support its green transition.
The NZBA was launched in 2021 to help financial institutions align with the global goal of limiting warming to 1.5°C, through climate-aligned lending, investment, and emissions targets. But pressure on banks from policymakers—especially in the U.S.—has grown sharply, prompting multiple firms to reconsider the reputational and regulatory risks of climate-focused alliances.
Global peers including JPMorgan, Citi, Morgan Stanley, Macquarie and Bank of Montreal have also stepped away from the NZBA this year, amid mounting political backlash over banks’ participation in pro-climate initiatives.
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“NZBA’s strength lies in the commitment of its member banks to lead the net zero transition,” said an NZBA spokesperson. “This long-term work requires courage, consistency and true leadership to stay on track, even when faced with barriers to action.”
In response to growing member attrition, NZBA recently relaxed some of its stricter membership rules, aiming to slow the exodus and make the alliance more accessible to emerging market lenders. The group said the changes were made to reflect the “slow pace of change” in the real economy.
The decision also coincides with leadership changes at UBS. Last month, the bank announced that Chief Sustainability Officer Michael Baldinger would step down by July 2025. Christian Leitz, currently head of corporate responsibility and the bank’s corporate historian, will assume the CSO title in addition to his existing responsibilities. Oversight of the bank’s sustainability strategy and impact remains with Beatriz Martin Jimenez, who also serves on UBS Group’s board.
With the climate banking alliance losing several of its founding members and its credibility in question, the NZBA now faces an uphill battle to remain a relevant force in aligning finance with global climate goals.
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