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HSBC announced that it has decided to withdraw from the Net-Zero Banking Alliance (NZBA), following […]]
HSBC Exits Net Zero Banking Alliance – ESG Today
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Sustainable Finance
HSBC Exits Net Zero Banking Alliance
Mark Segal
July 14, 2025
HSBC announced that it has decided to withdraw from the Net-Zero Banking Alliance (NZBA), following its North American peers to become the first major UK bank to exit the UN-backed coalition dedicated to advancing global net zero goals through their financing activities.
Despite its departure from the NZBA, however, HSCB reiterated its commitment to pursue its net zero by 2050 goal, saying in a statement “we remain resolute in this long-term ambition and in supporting our customers to finance their transition objectives.” HSBC joined the NZBA as a founding member in 2021.
HSBC’s exit forms the latest in a series of high-profile departures from the NZBA over the past several months, after members of the group started to come under significant pressure, particularly from Republican politicians in the U.S., who have been warning financial institutions including banks, insurers, asset owners and investors of potential legal violations from their participation in climate-focused alliances and of plans to exclude the companies from state business, as part of a broader anti-ESG political campaign.
Shortly after the election of Donald Trump, U.S.-based banks began departing the group, beginning with Goldman Sachs, and ultimately including every major Wall Street bank. In January, all major banks in Canada announced that they would leave the NZBA, with a few major banks in other countries also recently announcing exits including Australia’s Macquarie, and Japan’s Sumitomo Mitsui.
The series of departures has slowed in recent months, however, after NZBA members agreed in April 2025 to a series of significant changes to the alliance’s framework and principles, including eliminating a mandatory requirement for banks to align lending and capital markets activities with the goal of limiting global warming to 1.5°C.
Despite HSBC’s reiterated its net zero ambition, the announcement raised concerns by sustainability-focused investor groups over the bank’s commitment to its climate goals, noting that it marks the latest in a series of concerning moves by HSBC.
HSBC’s exit follows an announcement by the bank earlier this year of a decision to push back its 2030 target to achieve net zero emissions in its operations and supply chain by 20 years to 2050, and that it is placing its interim targets to reduce financed emissions in key carbon-intensive industries under review, noting a “slower than envisioned” pace of decarbonization globally impacting its ability to reach its goals. HSBC also announced in November that the bank’s Group Chief Sustainability Officer Celine Herweijer had decided to step down, with the departure following HSBC’s restructuring which resulted in the CSO no longer being included on the bank’s Group Executive Committee.
At HSBC’s AGM in May 2025, a group of investors representing $1.6 trillion in assets under management, led by responsible investing NGO ShareAction, called on HSBC to restate its net zero commitments, noting that recent moves by the bank have created “deeply concerning signals” around its climate priorities. At the AGM, HSBC’s departing chairman Mark Tucker confirmed the bank’s commitment of “becoming a net zero bank by 2050,” but admitted that reaching its climate goals was proving tougher than anticipated given the pace of change in the broader economy.”
Following HSBC’s announcement of its departure from the NZBA, Jeanne Martin, ShareAction’s Co-Director of Corporate Engagement, said:
“We strongly condemn HSBC’s decision to leave the NZBA, which is yet another troubling signal around the bank’s commitment to addressing the climate crisis. It sends a counterproductive message to governments and companies, despite the multiplying financial risks of global heating and the heatwaves, floods, and extreme weather it will bring.”
In its statement announcing the departure, HSBC said that it will remain engaged with the Glasgow Financial Alliance for Net Zero (GFANZ), in order to “support the mobilisation of capital towards the net zero transition.” GFANZ initially acted as an umbrella group for financial sector net zero coalitions, including the NZBA, but has recently announced a restructuring to focus on enabling the mass mobilization of capital to support the low carbon transition.
HSBC added:
“We continue to support customers in all sectors to make progress towards their individual decarbonisation plans, recognising that the transition to net zero is not linear or uniform across sectors, markets, and regions. Our strategy is to provide our customers with pragmatic financing solutions that facilitate their progress and support long-term emissions reduction while advancing energy security and meeting the economic and industrial needs of today’s economy.”
Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.
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Sustainable Finance
HSBC Exits Net Zero Banking Alliance
CapitaLand Launches New Framework to Quantify the Financial Return of Sustainability Investments
EU Launches Major Simplification of Sustainability Taxonomy to Ease Compliance Burden on Companies
UBS Raises $100 Million for SDG-Focused Blended Finance Fund
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