Background on Barclays and the Net-Zero Banking Alliance
Barclays, one of the United Kingdom’s major lenders, has recently announced its departure from the Net-Zero Banking Alliance, following similar decisions by HSBC and several large U.S. banks. This move has sparked concerns about Barclays’ ability to influence the sector’s transition towards a more sustainable future.
Barclays’ Statement and Commitment
In a statement posted on its website, Barclays explained that it had “carefully considered the matter” and decided to withdraw from the Net-Zero Banking Alliance. The bank emphasized its ongoing commitment to achieving net-zero emissions by 2050 and expressed its belief in the commercial opportunity presented by the energy transition for both itself and its clients.
Jeanne Martin, co-director of corporate engagement at the responsible investment advocacy group ShareAction, described Barclays’ decision as “incredibly disappointing and a step in the wrong direction” at a time when climate change risks are escalating rapidly.
Barclays’ Reason for Leaving the Alliance
According to Barclays, the alliance no longer serves its purpose due to the withdrawal of most global banks. The bank stated, “With the majority of worldwide banks walking away, the organization no longer has the necessary members to support our transition.”
Net-Zero Banking Alliance Overview
Launched by the United Nations Environment Programme’s Finance Initiative, the Net-Zero Banking Alliance comprises over 100 members, including prominent international financial institutions. The alliance aims to support its members in leading the fight against climate change by addressing obstacles preventing their clients from investing in a zero-balance transition.
Key Questions and Answers
- What is the Net-Zero Banking Alliance? It’s a global initiative launched by the UN Environment Programme’s Finance Initiative, bringing together over 100 financial institutions committed to supporting the transition to a net-zero emissions economy.
- Why did Barclays leave the alliance? Barclays stated that the alliance no longer serves its purpose due to the withdrawal of most global banks, implying insufficient support for their transition efforts.
- What is Barclays’ stance on climate change? Despite leaving the alliance, Barclays maintains its commitment to achieving net-zero emissions by 2050 and sees commercial opportunities in the energy transition for its clients.
- How have other major banks reacted to the Net-Zero Banking Alliance? HSBC and several large U.S. banks have already withdrawn from the alliance, raising concerns about their ability to influence the sector’s transition towards sustainability.
- What is the role of the Net-Zero Banking Alliance? The alliance aims to support its members in leading the fight against climate change by addressing obstacles preventing their clients from investing in a zero-balance transition.
