Barclays ‘sends mixed signals’ exiting banking climate alliance

Barclays’ decision to leave the Net-Zero Banking Alliance (NZBA) has been criticised by NGO ShareAction for sending “mixed signals” to investors.

The UK bank announced last month it was exiting the alliance as “it no longer has the membership to support our transition”, according to a statement.

A number of major US banks, including JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, Bank of America and Morgan Stanley, departed the initiative amid a backlash against ESG investing. HSBC has also departed along with Canada’s Bank of Montreal, UBS and Mizuho Financial. 

However, ShareAction said Barclays’ announcement to leave NZBA came just three days after Barclays published a transition update iterating its commitment to be a net-zero bank by 2050.

“This is sending mixed signals to governments and companies around the world,” commented Jeanne Martin, ShareAction’s co-director of corporate engagement.

“Barclays’ decision to leave the NZBA is incredibly disappointing and a step in the wrong direction at a time when the dangers of climate change are rapidly mounting.

“As the financial risks of global heating multiply and climate impacts like heatwaves, floods and extreme weather events become more intense and frequent, we cannot afford half-measures. Responsible investors will be watching closely and raising the pressure on the bank to protect long-term economic prosperity and the livelihoods of people everywhere.”

Earlier this year, the Glasgow Financial Alliance for Net Zero (GFANZ) announced a restructuring and an aim to become a principles-based group following financial firms leaving the alliance.

Further, the Net Zero Asset Managers initiative (NZAM) has announced it is “suspending activities” following the departure of BlackRock and a number of others from its list of signatories – something ShareAction said was another “backwards step” at the time.