• Net-Zero Banking Alliance (NZBA) members vote overwhelmingly in favour of adopting proposed changes to the NZBA framework, concluding a strategic review that has been underway for a year.
  • The vote renews the mandate of the 120+ member banking alliance, introducing increased levels of support for banks to achieve their individual climate targets while bolstering their sectoral engagement efforts.
  • NZBA members set new priorities in response to changing external circumstances and member needs.

Geneva, 15 April 2025 – The Net-Zero Banking Alliance (NZBA), the global initiative supporting banks to lead on climate mitigation in line with the goals of the Paris Agreement, today confirms members have voted overwhelmingly in favour of backing plans to strengthen the support it provides to its members, marking a new phase for the Alliance’s work.

The vote follows a year-long strategic review during which all member banks were able to provide input on NZBA’s future direction. The decision builds on the significant achievements of the Alliance since its founding in 2021, including the development of the internationally recognized Guidance for Climate Target Setting for Banks, which has supported over 100 banks to set independent 1.5°C-aligned sector-specific climate targets for the first time.

“We are halfway through the critical decade for action on climate, and we need all sectors, including banking and finance, to commit to moving the needle on emissions reductions,” said Shargiil Bashir, NZBA Chair and Chief Sustainability Officer and Executive Vice President at First Abu Dhabi Bank. “As the largest global initiative specifically focused on supporting climate mitigation action by banks, NZBA is uniquely positioned to provide practical support to banks navigating the net-zero transition. I welcome the decision by members to progress NZBA into its new chapter.”

The member–approved changes will propel NZBA into its next phase, supporting member banks to progress against their individual climate-related strategies. This includes a renewed focus on sectoral engagement to support member banks to deepen client relationships and address constraints on green growth by working with their clients to advance policies that stimulate markets and unlock opportunities for investment.

Over the past few years, the external landscape for banks has rapidly changed. The changes adopted by NZBA are a response to this new reality. Specifically, they:

  • Recognize that many members are subject to significant new external climate reporting requirements, while continuing to provide a global reference point, guidance, and recommendations for banks in jurisdictions with and without relevant climate-related regulations.
  • Acknowledge a wider range of net-zero pathways that align with the temperature goals of the Paris Agreement to limit global temperature rise to well below 2°C and to strive for 1.5°C. This acknowledgment increases flexibility for banks with exposures to a range of markets and sectors to manage targets and transition across their balance sheet, while still including the net-zero by 2050 low/or no overshoot 1.5°C pathways that many member banks already use, and which remain the guiding star.
  • Underscore members’ ultimate accountability to shareholders, investors, supervisors, regulators and society.

NZBA remains a vital platform for knowledge-sharing, capacity-building, and leadership to support banks in achieving their net-zero commitments. The changes adopted today ensure NZBA can continue to support its members as they implement their individual and independent climate-related strategies.