UBS joins exodus from climate banking alliance
The departure raises questions about the future of NZBA, an initiative established in 2021 to help banks align with global climate goals, including funding environmentally friendly activities and setting emission reduction targets.
UBS said that although the alliance had provided valuable frameworks for initial target-setting, the bank has advanced its own capabilities and decided to leave.
Global peers including JPMorgan, Citi, Morgan Stanley, Macquarie and Bank of Montreal have all exited the group this year as the US increases its scrutiny of financial institutions deemed to be supporting pro-climate policies.
The group was formed in 2021 to help align the sector with the world's goal of limiting global warming, including by mobilising more money for environmentally friendly activities and setting targets for members to reduce emissions linked to their business activities.
Barclays said last week it had quit the group because the departure of several global lenders has left the NZBA no longer fit to support the bank's green transition.
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UBS said the group had played a valuable role in helping banks establish initial target-setting frameworks in the early days but had decided to leave now that the work had advanced, and the Swiss lender had bulked up its in-house capabilities.
'NZBA's strength lies in the commitment of its member banks to lead the net zero transition,' an NZBA spokesperson said. 'This long-term work requires courage, consistency and true leadership to stay on track, even when faced with barriers to action.'
Earlier this year, NZBA ditched some of its more stringent membership rules in a bid to keep members. The group said the move was a reflection of the slow pace of change in the real economy and to help appeal to emerging market lenders.
Last month, UBS announced it was replacing its head of sustainability Michael Baldinger, who was in the role of chief sustainability officer (CSO) until July 2025.
Baldinger was replaced by Christian Leitz, who adds the CSO title to his current role as head of corporate responsibility and corporate historian. UBS Group's sustainability strategy and impact is overseen by Beatriz Martin Jimenez, who also sits on the bank's board which includes the bank's philanthropy work. REUTERS
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