UBS has withdrawn from the Net Zero Banking Alliance (NZBA), following Barclays’ exit earlier this week. The move reflects growing discontent among major banks over the alliance’s recent softening of climate targets.
Formed in 2021 under the UN-backed Glasgow Financial Alliance for Net Zero, NZBA initially required members to align with a 1.5°C warming limit and net-zero emissions by 2050. However, it has since downgraded these obligations to non-binding recommendations, prompting exits from leading banks including JPMorgan Chase, HSBC, Goldman Sachs, and others.
UBS cited a preference for “credible, science-based pathways” over “aspirational goals without substance.” Earlier this year, it delayed its net-zero target from 2025 to 2035, citing integration challenges after acquiring Credit Suisse. The bank has also removed ESG-linked executive pay metrics in its latest sustainability report.
The exits come amid rising political and regulatory pushback against ESG investing, particularly in the U.S., where renewed scepticism under the Trump administration is reshaping global attitudes. Sustainable funds saw record outflows in Q1 2025 but rebounded slightly in Q2.
