Major UK high street bank quits UN-backed net zero alliance as it says body ‘not fit for purpose'
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A MAJOR high street bank has become the latest British lender to quit the Net Zero Banking Alliance, the bank said on Friday.
Barclays argued that the departure of several global lenders has left it no longer fit to support the bank's green transition.
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Barclays has become the latest British lender to quit the Net Zero Banking Alliance
Barclays' decision to quit the foremost banking alliance focused on tackling climate change follows on from HSBC and several major US banks.
It also raises questions about the ability of the group to influence change in the sector going forward.
The bank said in a statement on its website: "After consideration, we have decided to withdraw from the Net Zero Banking Alliance."
It 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.
It said the bank made £500 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."
Barclays said 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 Net Zero Banking Alliance, 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 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."
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It comes after it was announced that Barclays is slashing interest rates on its popular Rainy Day for the third time in less than seven months.
From August 4, the interest rate for balances up to £5,000 will fall from 4.61% to 4.36%.
The Rainy Day Saver account, which offers easy access to funds, has been a favourite among Barclays' 20 million customers.
It is designed for balances up to £5,000, with savers earning the higher rate on the first £5,000 – currently 4.61%.
Savings above this threshold earn just 1% interest, but customers benefit from instant access to their money at any time.
At the current rate, holding £5,000 in the account would earn you £230.50 in interest over 12 months.
However, when the rate drops to 4.36%, this will fall to £218 - a loss of £12.50 per year.
Once boasting a competitive 5.12% interest rate earlier this year, Barclays has steadily chipped away at its appeal.
In February, the rate dropped to 4.87%, followed by another cut in April to 4.61%.
In February, the bank reduced the rate to 4.87%, followed by another cut in April to 4.61%.
Now, just months later, rates are set to drop again, leaving savers questioning whether to stick with the account or explore better options elsewhere.
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