13 Jul 2025

Following in the footsteps of U.S. banks… British bank withdraws from climate alliance

Tired Earth

By The Editorial Board

British bank HSBC has become the latest financial institution to withdraw from a banking sector climate alliance, following the lead of major American banks. This move comes amid a wave of policies that downplay climate action, and as some governments scale back their ambitions to reach net-zero emissions.

The bank confirmed that, while it acknowledges the role played by the Net-Zero Banking Alliance in developing guidelines to help banks set emissions reduction targets, it has decided to leave the group as it prepares to update its own net-zero transition plan.

A spokesperson for the bank stated: “We remain fully committed to supporting our clients in financing their transition goals and in making progress toward our ambition of achieving net-zero emissions by 2050.”

Earlier this year, several global banks — mostly American — had already pulled out of the alliance, including JPMorgan, Citi, Morgan Stanley, Macquarie, and the Bank of Montreal.

The alliance was formed in 2021 to help align the banking sector with the global goal of limiting global warming, including by mobilizing more financing for environmentally friendly activities and by setting emission reduction targets for member banks in relation to their business activities.

HSBC had already abandoned its 2030 emissions reduction target in February, blaming the slow progress in achieving net-zero emissions in the real economy. Meanwhile, the UK government remains legally committed to reaching net-zero by 2050.

On its website, HSBC states that its emissions reduction targets tied to its loan book “will continue to be guided by the latest scientific evidence and credible sector-specific pathways.”

Earlier this year, some European banks also threatened to withdraw from the Net-Zero Banking Alliance — the largest climate alliance in the banking sector — unless its rules were revised and its strict financial and environmental requirements for members were relaxed.

In the United States, following the return of President Donald Trump to the White House, there has been a notable escalation against climate policies and against companies that support climate-conscious strategies. The U.S. also withdrew from the 2015 Paris Climate Agreement.

This backlash has centered on policies aimed at curbing climate change and promoting environmental sustainability, which are now viewed by the new U.S. administration as obstacles to economic development.

Source : Aljazeera

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