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Barclays is the latest British lender to leave climate banking alliance

Barclays is the latest British lender that has quit the Net Zero Banking Alliance. The bank announced this on Friday. It argued that it was no longer able to support its green transition due to the departure of other global lenders.

Barclays' decision, which follows that of HSBC as well as several major U.S. financial institutions, to leave the leading banking alliance aimed at tackling climate changes raises concerns about the group's ability to influence the sector in the future.

In a website statement, the bank stated that it had "decided to withdraw from Net Zero Banking Alliance".

The bank said that its commitment to achieve net zero by the year 2050 was unchanged, and that they still saw an opportunity in energy transition for themselves and their clients.

Barclays released its first sustainability strategy update in several years earlier this week. The company said that it will make 500 million pounds ($666.20) from transition financing for low-carbon and sustainable projects by 2024.

Jeanne Martin is the co-director for corporate engagement of ShareAction, a responsible investment NGO. She called the decision to leave Net Zero Banking Alliance an "incredibly disappointing step and a wrong direction in a time where the dangers of global warming are rapidly increasing."

Barclays stated that the alliance no longer met its original purpose. "With most global banks having left, the organisation does not have the membership to support our transformation."

On its website, the Net Zero Banking Alliance (a global initiative launched under the United Nations Environment Programme Finance Initiative) lists more than a hundred members, including major international financial institutions.

The alliance, according to a spokesperson, is committed to "supporting members in their efforts to be leaders on climate change by addressing barriers that prevent clients from investing into the net-zero transformation."

The NZBA overhauled their rules earlier this year after key members left. Banks voted to abandon some of the more stringent rules. Virginia Furness is reporting, Iain Withers is editing and Philippa Fletcher is a contributor.

(source: Reuters)