Barclays latest British lender to quit climate banking alliance
Barclays' decision to quit the foremost banking alliance focused on tackling climate change follows that of HSBC and several major US banks and raises questions about the ability of the group to influence change in the sector going forward.
'After consideration, we have decided to withdraw from the Net Zero Banking Alliance,' the bank said.
The bank added that its commitment to be net zero by 2050 remained unchanged and that it still saw a commercial opportunity for itself and its clients in the energy transition.
Earlier this week, Barclays published the first update on its sustainability strategy in several years and said that it made £500 million (S$857 million) in revenue from sustainable and low-carbon transition finance in 2024.
Jeanne Martin, co-director of corporate engagement at responsible investment NGO ShareAction, called the decision to leave the Net Zero Banking Alliance 'incredibly disappointing and a step in the wrong direction at a time when the dangers of climate change are rapidly mounting'.
A NEWSLETTER FOR YOU
Friday, 12.30 pm ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
Sign Up
Sign Up
Barclays said that the alliance was no longer fit for its purpose: 'With the departure of most of the global banks, the organisation no longer has the membership to support our transition.'
The NZBA, a global initiative launched by the United Nations Environment Programme Finance Initiative, lists more than 100 members on its website, including leading international financial institutions.
A spokesperson for the alliance said that it remains focused on 'supporting its members to lead on climate by addressing the barriers preventing their clients from investing in the net-zero transition.'
The NZBA earlier this year overhauled its rules after the departure of key members, with banks voting to ditch some of its more stringent membership rules. REUTERS
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
6 hours ago
- Straits Times
Ferrari's Charles Leclerc clinches pole position for Hungarian Grand Prix
Sign up now: Get ST's newsletters delivered to your inbox BUDAPEST – Charles Leclerc fought through an 'extremely difficult' qualifying on Aug 2 to put Ferrari on pole for the Hungarian Grand Prix, with McLaren's Formula One leader Oscar Piastri alongside on the front row. McLaren's Lando Norris, Piastri's closest title rival, qualified third with Mercedes' George Russell in fourth. The pole was Ferrari's first in a grand prix in 14 rounds this season, and it came after Leclerc pipped Piastri by a mere 0.026sec. 'Honestly, the whole qualifying has been extremely difficult. When I say extremely difficult, it's not exaggerating. It was difficult for us to get to Q2, it was difficult for us to get to Q3,' said Leclerc. 'Q3, the conditions changed a little bit. Everything became a lot trickier, and I knew I just had to do a clean lap to target third. At the end of the day, it's pole position. I definitely did not expect that. 'Honestly, I have no words. It's probably one of the best pole positions I've ever had. It's the most unexpected, for sure.' Does he think he can win the race then? Top stories Swipe. Select. Stay informed. Singapore $3b money laundering case: MinLaw names 6 law firms taken to task over involvement in property deals Singapore Police reopen access to all areas in Marina Bay after crowd congestion eases at NDP Preview area Singapore Opening of Woodlands Health has eased load on KTPH, sets standard for future hospitals: Ong Ye Kung Asia KTM plans new passenger rail service in Johor Bahru to manage higher footfall expected from RTS Singapore HSA investigating teen allegedly vaping on MRT train Asia 4 workers dead after falling into manhole in Japan Singapore New vehicular bridge connecting Punggol Central and Seletar Link to open on Aug 3 Singapore New S'pore jobs portal launched for North West District residents looking for work near home 'The start and Turn 1 will be key,' he added. 'I have no idea how it will go, but one thing for sure is that I'll do absolutely everything in order to keep that first place. If we manage to do that, that should make our life easier for the rest of the race.' McLaren had taken eight previous poles this season and qualified one-two in Hungary last time around. They have also won 10 of 13 races so far but overtaking is not easy at the circuit outside Budapest and Leclerc has a real chance of Ferrari's first win of 2025 if he can stave off the McLarens. Former British driver and pundit Martin Brundle said that there would be some 'head-scratching at McLaren' regarding what went wrong in qualifying. The wind changed towards the end of the session, which could have played a part. 'I think the wind changed a lot. It always sounds so pathetic blaming things on the wind. But it did a 180 from Q2 to Q3 and meant a lot of the corners felt completely different,' said Piastri. 'It was difficult to judge in those conditions and maybe not the best execution. I was surprised we couldn't go quicker than that. Second is still a decent spot to start so we'll see what we can do tomorrow. 'Charles has been quick all just changed a little bit. He did a very good job and well done to him. I wasn't expecting to be second to a Ferrari this weekend.' Norris added: 'From how our form is, then of course (it's disappointing), but I think Charles did a good job on the last lap. He probably risked a little bit more in these conditions. The wind changed a lot and it really seemed to punish us in a bigger way it seems. 'Not too many complaints. We thought we both did some good laps at the end, and we were just slow. I think it's going to be an exciting race. I would expect us to have a bit more pace than Charles, so I'm looking forward to it.' Behind the top four, the Aston Martins of Fernando Alonso and Lance Stroll were fifth and sixth. Gabriel Bortoleto of Sauber qualified seventh, ahead of a surprise eighth by four-time world champion Max Verstappen of Red Bull, and the Racing Bulls duo of Liam Lawson and Isack Hadjar in ninth and 10th. Heading into the race, Piastri leads the drivers' standings on 266 points, ahead of Norris (250) and Verstappen (185). REUTERS, AFP
Straits Times
6 hours ago
- Straits Times
Lions coach Farrell says Wallabies will be a force to be reckoned with
SYDNEY - British & Irish Lions coach Andy Farrell said a Wallabies revival was on its way and reiterated his view that it was insulting for people to suggest that they might not be strong enough opponents for a touring Lions side. After taking the Lions close in Melbourne last week, the Wallabies handed the visitors their only loss of their nine-match tour of Australia on Saturday with a convincing 22-12 victory in Sydney. Farrell had no complaints about the defeat, even if it cost his side a 3-0 series sweep, and he thought the Wallabies could be a real power when they host the World Cup in 2027. "I said to (Australia coach) Joe (Schmidt) before the game there on the pitch, that I think special things are going to happen for this team over the next 18 months," Farrell told a post-match press conference. "By the time the World Cup comes around, they'll be a force to be reckoned with, like everyone's seen in the past, they've got some special athletes and some special players, and that's no surprise to us after how they performed over the last couple of weeks." A decade of struggles on and off the pitch have knocked Australia down the pecking order in the rugby world and the twice world champions made a pool stage exit at the World Cup for the first time in 2023. Farrell, though, scoffed at the idea that they were no longer worthy of their place in the Lions touring cycle along with New Zealand and South Africa. Top stories Swipe. Select. Stay informed. Singapore Police reopen access to all areas in Marina Bay after crowd congestion eases at NDP Preview area Singapore Opening of Woodlands Health has eased load on KTPH, sets standard for future hospitals: Ong Ye Kung Singapore $3b money laundering case: MinLaw names 6 law firms taken to task over involvement in property deals Asia KTM plans new passenger rail service in Johor Bahru to manage higher footfall expected from RTS Singapore HSA investigating teen allegedly vaping on MRT train Asia 4 workers dead after falling into manhole in Japan Singapore New vehicular bridge connecting Punggol Central and Seletar Link to open on Aug 3 Singapore New S'pore jobs portal launched for North West District residents looking for work near home "We all know how hard it is to be successful on the Lions tour against a good side like Australia, and they are a good side, and they proved that over the series," he said. "I mean, everyone has their ups and downs. I've looked at the progress over the last 18 months. It's been through the roof and you look at that side that's been out there over the last ... three weeks, they're a hell of a team." Asked about whether he was disappointed not to make it a clean sweep by winning Saturday's final test, Farrell said there were obviously frustrations. "Like we've said all along, that we wanted to win every game, and rightly so, but the best team won on the night today," he said. REUTERS
Business Times
18 hours ago
- Business Times
Barclays says credit liquidity premium gone as e-trading thrives
[NEW YORK] The additional compensation investors demand to own tougher-to-sell investment-grade bonds has vanished, thanks to a boom in electronic and portfolio trading, according to Barclays. The so-called illiquidity premium on such deals dropped to nearly zero in July, from 11 basis points between 2018 and 2024 and 35 basis points between 2011 and 2017, Barclays analysts, including Zornitsa Todorova and Andrea Diaz Lafuent,e wrote in a note this week. That excludes periods of heightened volatility, such as the Covid-19 pandemic. This premium has shrunk as electronic credit trading has boomed, bringing more liquidity to the market, according to the report. 'The illiquidity premium that once drew pensions and insurers to public markets is gone,' wrote the analysts. Half of US high-grade bonds now trade electronically and exchange-traded funds are injecting steady liquidity, boosting flows, according to Barclays. Portfolio trading now accounts for more than 20 per cent of high-grade volumes, up from 10 per cent in 2023, the analysts wrote. Computer-driven programs are also accounting for more and more of the activity in bond markets. The shift is driving more trading, lowering transaction costs and reducing the share of bonds that rarely trade. The monthly share of non-traded US high-grade bonds has dropped twenty-fold to 0.1 per cent, from 2 per cent a decade ago, according to a separate note on Aug 1. Daily share of illiquid bonds is down three-fold to 10 per cent from 30 per cent in the same period. 'Looking ahead, it could lower funding costs for smaller public issuers, as investors begin to price in stronger market liquidity,' wrote the analysts. BLOOMBERG
