Barclays has pulled out of a key United Nations-supported climate banking group, The Guardian reported.

What's happening?

Barclays is the second U.K. bank to exit the Net-Zero Banking Alliance following HSBC's departure in July.

This comes after multiple U.S. banks — including JPMorgan, Citigroup, Bank of America, Morgan Stanley, and Goldman Sachs — left.

The banking group, organized by the U.N. Environment Programme, asked members to guarantee that their lending and investment practices would reach net-zero goals by 2050. But Barclays said the group "no longer has the membership to support our transition" since many global banks have left.

"Shame on them," Standard Chartered CEO Bill Winters said about the banks. He called out companies that jumped on the climate action movement when it was "fashionable" but have backed off or stopped talking about it.

Why is climate action in the banking industry important?

When big banks commit to climate goals, they can shift trillions of dollars from oil and gas companies to clean energy projects.

The NZBA looked to push banks to use their money power to help build a cleaner economy. Without banks working together, achieving global climate goals becomes more challenging.

When banks back away from climate promises, it tells markets and businesses that green concerns are not a top priority. This can slow down clean energy growth when we need it most.

Though it's leaving the alliance, Barclays says it's still working to be pollution-free by 2050 and plans to fund $1 trillion in green projects.

What's being done about climate action in the banking industry?

Even with these exits, other banks are sticking with their climate goals.

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Standard Chartered has doubled down on its green commitments, and Barclays said its "sustainable and transition-related activity" brought "approximately half a billion pounds in revenues" in 2024. The bank added that it will keep working with "clients on their transition, finance the transition and scale climate tech, while helping to ensure energy security."

If you worry about how your money affects the climate, you can take action. Check your bank's green policies and consider switching to a bank with strong climate goals and transparent reporting. Look for banks that stayed in climate groups or have clear, science-based objectives.

You can put your money into funds that focus on green investing and clean energy. Many investing apps now give you choices that don't include oil companies.

Call or email your bank to inquire about its climate initiatives and express your desire for robust green commitments. When enough customers speak up, banks listen.

By choosing your bank wisely, you support financial companies that care about climate action and encourage those that don't to improve.

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