UBS Leaves the Net Zero Banking Alliance
UBS Exits Net-Zero Banking Alliance: A Shift in Sustainability Strategy
Swiss banking giant UBS has announced its withdrawal from the Net-Zero Banking Alliance (NZBA), marking a significant shift in its sustainability strategy. The bank, which was a founding member of the alliance in 2021, has emphasized that its commitment to sustainability remains unwavering, but it no longer sees the NZBA as essential given its stronger in-house tools and frameworks.
The decision comes amidst a broader retreat by major global banks from the NZBA. HSBC, Barclays, JPMorgan, Citi, and several North American banks have previously exited the coalition this year, reflecting a growing trend of banks reassessing their involvement in climate-focused alliances.
UBS's exit is attributed to its recent acquisition of Credit Suisse, which has necessitated a reevaluation of the bank's climate goals. The bank has reset some of its climate targets, including pushing back its net-zero target for its own operations by 10 years to 2035. Additionally, UBS has revised its sustainability language to focus on the global economy's transition to net zero by 2050, rather than firm-specific absolute targets.
Despite withdrawing from the NZBA, UBS has emphasized that it will continue to support clients in transitioning to a low-carbon economy and maintain sustainability integration within its risk management and investment offerings. The bank remains committed to addressing its financed emissions in specified sectors.
The NZBA, backed by the United Nations, has agreed to a series of changes to its framework and principles in April 2025, including the elimination of a mandatory requirement for banks to align their lending and capital markets activities with the goal of limiting global warming to 1.5°C. The alliance remains focused on supporting the many committed banks driving this transition forward.
However, the withdrawal of UBS and other banks from the NZBA has not gone unnoticed. Republican politicians in the U.S. have been applying pressure on members of the NZBA and similar coalitions, warning financial institutions of potential legal violations from their participation in climate-focused alliances and of plans to exclude companies from state business as part of a broader anti-ESG political campaign.
As a pioneer in exiting the UN-backed coalition dedicated to advancing global net zero goals through their financing activities, UBS is the first major European bank outside of the UK to take this step. The implications of this trend for the banking sector and the global net zero transition remain to be seen.
[1] UBS Sustainability Report 2025 [2] Financial Times, Major banks exit Net-Zero Banking Alliance, August 2025 [3] Reuters, UBS and other major banks exit Net-Zero Banking Alliance, August 2025 [4] UBS Press Release, UBS announces withdrawal from Net-Zero Banking Alliance, August 2025 [5] The Guardian, UBS pulls out of Net-Zero Banking Alliance, August 2025
- UBS, while exiting the Net-Zero Banking Alliance, has affirmed that it will persist in its support for business transition towards a low-carbon economy, demonstrating the bank's ongoing commitment to finance decarbonization.
- Despite its withdrawal from the Net-Zero Banking Alliance, UBS plans to maintain its focus on addressing financed emissions in specific sectors, indicating that the bank's dedication towards sustainability remains a significant aspect of its business strategy.
