HSBC Bids Farewell to Net Zero Banking Alliance Commitment
HSBC, a founding member of the Net-Zero Banking Alliance (NZBA), announced its departure from the coalition in early July 2025. The decision came after the bank's chairman, Mark Tucker, admitted that reaching the bank's climate goals was proving tougher than anticipated.
The primary reasons for HSBC's departure from the NZBA include the completion of the alliance's initial framework goals, strategic refocus to implement its own transition plans, and external political pressures, particularly from the U.S. anti-ESG (Environmental, Social, Governance) environment.
HSBC stated that the NZBA had completed its foundational work in developing guiding frameworks and target-setting approaches for banks. The bank intends to update and implement its own Net Zero Transition Plan later in 2025 independently. HSBC remains committed to its net zero by 2050 ambition and continues to support customers' transitions and decarbonization efforts, albeit outside the NZBA framework.
The series of departures from the NZBA has slowed in recent months after members agreed to a series of significant changes to the alliance's framework and principles. However, HSBC's exit forms part of a series of high-profile departures from the NZBA over the past several months.
Climate campaigners have criticized HSBC’s decision as a "troubling" sign for the bank’s commitment to tackling the climate crisis, warning about the impact on international climate coordination efforts. A group of investors representing $1.6 trillion in assets under management called on HSBC to restate its net zero commitments at the bank's AGM in May 2025.
HSBC's Group Chief Sustainability Officer, Celine Herweijer, has stepped down following the bank's restructuring. The bank is reviewing its interim targets to reduce financed emissions in key carbon-intensive industries.
Despite leaving the NZBA, HSBC's strategy remains focused on providing pragmatic financing solutions that facilitate its customers' progress towards their individual decarbonization plans. The bank will continue to support customers in all sectors to make progress towards their individual decarbonization plans.
The U.S.-based banks began departing the group shortly after the election of Donald Trump, including Goldman Sachs and all major Wall Street banks. Members of the NZBA have been under significant pressure, particularly from Republican politicians in the U.S. The series of departures has slowed in recent months after NZBA members agreed to a series of significant changes to the alliance's framework and principles.
Other major banks, such as Australia's Macquarie and Japan's Sumitomo Mitsui, have also recently announced exits. Despite these departures, the NZBA is on the strongest possible footing to support members' continued progress on independent business strategies that are enabling the shift towards a net-zero economy.
- HSBC's departure from the Net-Zero Banking Alliance (NZBA) is not a withdrawal from their commitment to climate-change mitigation; instead, they aim to update and implement their own Net Zero Transition Plan independently.
- The bank's Group Chief Sustainability Officer, Celine Herweijer, has stepped down following the bank's restructuring, and HSBC is currently reviewing its interim targets to reduce financed emissions in key carbon-intensive industries.
- In light of HSBC's departure and those of other banks like Macquarie and Sumitomo Mitsui, the NZBA continues to be well-positioned to support members' progress on independent business strategies, enabling the transition towards a net-zero economy.
