Barclays latest British lender to quit climate banking alliance
Barclays' decision to quit the foremost banking alliance focused on tackling climate change follows that of HSBC and several major US banks and raises questions about the ability of the group to influence change in the sector going forward.
'After consideration, we have decided to withdraw from the Net Zero Banking Alliance,' the bank said.
The bank added that its commitment to be net zero by 2050 remained unchanged and that it still saw a commercial opportunity for itself and its clients in the energy transition.
Earlier this week, Barclays published the first update on its sustainability strategy in several years and said that it made £500 million (S$857 million) in revenue from sustainable and low-carbon transition finance in 2024.
Jeanne Martin, co-director of corporate engagement at responsible investment NGO ShareAction, called the decision to leave the Net Zero Banking Alliance 'incredibly disappointing and a step in the wrong direction at a time when the dangers of climate change are rapidly mounting'.
A NEWSLETTER FOR YOU
Friday, 12.30 pm ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
Sign Up
Sign Up
Barclays said that the alliance was no longer fit for its purpose: 'With the departure of most of the global banks, the organisation no longer has the membership to support our transition.'
The NZBA, a global initiative launched by the United Nations Environment Programme Finance Initiative, lists more than 100 members on its website, including leading international financial institutions.
A spokesperson for the alliance said that it remains focused on 'supporting its members to lead on climate by addressing the barriers preventing their clients from investing in the net-zero transition.'
The NZBA earlier this year overhauled its rules after the departure of key members, with banks voting to ditch some of its more stringent membership rules. REUTERS
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
6 hours ago
- Business Times
Barclays says credit liquidity premium gone as e-trading thrives
[NEW YORK] The additional compensation investors demand to own tougher-to-sell investment-grade bonds has vanished, thanks to a boom in electronic and portfolio trading, according to Barclays. The so-called illiquidity premium on such deals dropped to nearly zero in July, from 11 basis points between 2018 and 2024 and 35 basis points between 2011 and 2017, Barclays analysts, including Zornitsa Todorova and Andrea Diaz Lafuent,e wrote in a note this week. That excludes periods of heightened volatility, such as the Covid-19 pandemic. This premium has shrunk as electronic credit trading has boomed, bringing more liquidity to the market, according to the report. 'The illiquidity premium that once drew pensions and insurers to public markets is gone,' wrote the analysts. Half of US high-grade bonds now trade electronically and exchange-traded funds are injecting steady liquidity, boosting flows, according to Barclays. Portfolio trading now accounts for more than 20 per cent of high-grade volumes, up from 10 per cent in 2023, the analysts wrote. Computer-driven programs are also accounting for more and more of the activity in bond markets. The shift is driving more trading, lowering transaction costs and reducing the share of bonds that rarely trade. The monthly share of non-traded US high-grade bonds has dropped twenty-fold to 0.1 per cent, from 2 per cent a decade ago, according to a separate note on Aug 1. Daily share of illiquid bonds is down three-fold to 10 per cent from 30 per cent in the same period. 'Looking ahead, it could lower funding costs for smaller public issuers, as investors begin to price in stronger market liquidity,' wrote the analysts. BLOOMBERG
Business Times
7 hours ago
- Business Times
Barclays latest British lender to quit climate banking alliance
[LONDON] Barclays has become the latest British lender to quit the Net Zero Banking Alliance (NZBA), the bank said on Friday (Aug 1), arguing that the departure of several global lenders has left it no longer fit to support the bank's green transition. Barclays' decision to quit the foremost banking alliance focused on tackling climate change follows that of HSBC and several major US banks and raises questions about the ability of the group to influence change in the sector going forward. 'After consideration, we have decided to withdraw from the Net Zero Banking Alliance,' the bank said. The bank added that its commitment to be net zero by 2050 remained unchanged and that it still saw a commercial opportunity for itself and its clients in the energy transition. Earlier this week, Barclays published the first update on its sustainability strategy in several years and said that it made £500 million (S$857 million) in revenue from sustainable and low-carbon transition finance in 2024. Jeanne Martin, co-director of corporate engagement at responsible investment NGO ShareAction, called the decision to leave the Net Zero Banking Alliance 'incredibly disappointing and a step in the wrong direction at a time when the dangers of climate change are rapidly mounting'. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Barclays said that the alliance was no longer fit for its purpose: 'With the departure of most of the global banks, the organisation no longer has the membership to support our transition.' The NZBA, a global initiative launched by the United Nations Environment Programme Finance Initiative, lists more than 100 members on its website, including leading international financial institutions. A spokesperson for the alliance said that it remains focused on 'supporting its members to lead on climate by addressing the barriers preventing their clients from investing in the net-zero transition.' The NZBA earlier this year overhauled its rules after the departure of key members, with banks voting to ditch some of its more stringent membership rules. REUTERS
Straits Times
13 hours ago
- Straits Times
Caribbean activists celebrate as Saint Lucia strikes down gay sex ban
Sign up now: Get ST's newsletters delivered to your inbox CASTRIES, Saint Lucia - Caribbean gay rights activists celebrated a landmark court ruling this week striking down colonial-era legislation in the island nation of Saint Lucia that criminalized gay sexual relations and imposed prison terms of up to a decade. The Eastern Caribbean Supreme Court issued the decision on Tuesday in the case brought by LGBTQ rights alliance ECADE on behalf of a gay couple. The court ruled that sections of the criminal code that outlawed "buggery" and "gross indecency" were unconstitutional. "Our own courts are now recognizing that these colonial-era laws are incompatible with human dignity," Dane Lewis, regional program manager at rights group CariFLAGS, said. Many Caribbean countries still have laws forbidding intimacy between people of the same sex, a legacy of British colonial-era statutes. Though rarely enforced, activists say these cement widespread institutional biases and discrimination. Jessica St. Rose, founder of local rights group 758Pride, said the ruling marked a "momentous legal change." "It sends a clear message that love is not a crime," she said, though Saint Lucia still needs reforms to protect LGBTQ people from discrimination and threats to their safety. Top stories Swipe. Select. Stay informed. Tech Reporting suspected advanced cyber attacks will provide a defence framework: Shanmugam Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet Asia Asia-Pacific economies welcome new US tariff rates, but concerns over extent of full impact remain Business ST explains: How Trump tariffs could affect Singapore SMEs, jobs and markets Asia Indonesia's Mount Lewotobi Laki-laki erupts Singapore Thundery showers expected on most days in first half of August Singapore Synapxe chief executive, MND deputy secretary to become new perm secs on Sept 1 Singapore 5 women face capital charges after they were allegedly found with nearly 27kg of cocaine in S'pore Saint Lucian politicians were mostly silent about the decision publicly, including Prime Minister Philip Pierre who made a national address ahead of Friday's Emancipation Day. In nearby Guyana, where "buggery" is a felony subject to a lifetime behind bars, rights group Guyana Together welcomed that another country in the CARICOM regional bloc had "dismantled these archaic laws." More than 60 countries worldwide criminalize gay sex, many former British colonies across Africa and the Caribbean. There was some criticism on social media from Saint Lucia residents of the decision, some citing Christian scripture and calling the ruling a sin. "We do expect the religious society to come out to speak out against the recent ruling," St. Rose said. Bradley Desir, a gay man from Saint Lucia who moved to Canada in 2016, said he was encouraged by signs of change and would feel safer visiting the island though he would still maintain his guard. "I hope they carry on with the discussion and possibly call for the legalization of (gay) marriage," he said, adding he did not expect this in his lifetime. The growing visibility of LGBTQ people through global media was a positive sign, he added: "Kids today are growing up in a different world." REUTERS
