The Net-Zero Banking Alliance (NZBA), a leading global initiative aimed at aligning banking activity with the Paris Agreement climate goals, has confirmed that its members have voted overwhelmingly to renew its mandate with a sharpened focus on real economy decarbonisation.
Following a year-long strategic review that sought input from all member banks, the NZBA is set to launch a new phase of support, building on significant progress since its 2021 inception. A cornerstone achievement to date has been the creation of the Guidance for Climate Target Setting for Banks, now an internationally recognised framework that has helped more than 100 banks set independent 1.5°C-aligned, sector-specific climate targets.
NZBA chair and First Abu Dhabi Bank chief sustainability officer and executive vice president Shargiil Bashir said, “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. 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 renewed mandate will see NZBA deepen its role in helping banks deliver on their climate strategies, with a particular emphasis on sectoral engagement. This shift is intended to strengthen client relationships and help banks work collaboratively with their customers to address policy bottlenecks and unlock green investment opportunities.
The Alliance also acknowledged the evolving regulatory landscape and has adapted its strategy accordingly. Many members are now subject to new climate reporting mandates, and NZBA will continue to offer guidance applicable across jurisdictions—whether or not local climate-related regulations exist.
Significantly, the updated approach recognises a broader set of net-zero pathways aligned with the Paris Agreement’s goals to limit temperature rises to well below 2°C, with an emphasis on striving for a 1.5°C scenario. This recognition allows member banks with diverse portfolios across global markets to tailor their transition strategies while still adhering to ambitious net-zero by 2050 pathways.
The renewed framework reinforces member banks’ accountability to shareholders, investors, supervisors, regulators and the public. By continuing to serve as a platform for knowledge exchange and leadership, NZBA ensures its members are equipped to independently implement their climate strategies while adapting to fast-changing market conditions.
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