HSBC becomes first UK bank to quit industry's net zero alliance
The move risks triggering further departures from the Net Zero Banking Alliance (NZBA) by UK banks, in a fresh blow to international climate coordination efforts.
HSBC's decision follows a wave of exits by big US banks in the run-up to Donald Trump's inauguration in January. His return to the White House has spurred a climate backlash as he pushes for higher production of oil and gas.
HSBC was a founding member of the NZBA at its launch in 2021, with the bank's then chief executive, Noel Quinn, saying it was vital to 'establish a robust and transparent framework for monitoring progress' towards net zero carbon-emission targets.
'We want to set that standard for the banking industry. Industry-wide collaboration is essential in achieving that goal,' Quinn said.
Convened by the UN environment programme's finance initiative but led by banks, the NZBA commits members to aligning their lending, investment and capital markets activities with net zero greenhouse-gas emissions by 2050 or earlier.
Six of the largest banks in the US – JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs – left the NZBA after Trump was elected.
UK lenders including Barclays, Lloyds, NatWest, Standard Chartered and Nationwide were still listed as members as of Friday afternoon.
In February HSBC announced it was delaying key parts of its climate goals by 20 years and watering down environmental targets in a new long-term bonus plan for its chief executive, Georges Elhedery, who took over last year.
The climate campaign group ShareAction condemned the move, saying it was 'yet another troubling signal around the bank's commitment to addressing the climate crisis'.
Jeanne Martin, ShareAction's co-director of corporate engagement, said: 'It sends a counterproductive message to governments and companies, despite the multiplying financial risks of global heating and the heatwaves, floods and extreme weather it will bring.
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'Investors will be watching closely how this backsliding move will translate into its disclosures and policies.'
HSBC said in a statement: 'We recognise the role the Net Zero Banking Alliance has played in developing guiding frameworks to help banks establish their initial target-setting approach.
'With this foundation in place, we have decided to withdraw from the NZBA as we work towards updating and implementing our own net zero transition plan.
'We remain resolutely focused on supporting our customers to finance their transition objectives and on making progress towards our net zero by 2050 ambition.'
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