Macquarie Group Becomes 1st Australian Bank to Exit Net Zero Banking Alliance

A global financial services provider based in Australia has announced it is parting ways with the United Nations-backed Net Zero Banking Alliance (NZBA).

Macquarie Group is the latest financial institution to withdraw from the body following in the footsteps of Goldman Sachs, Morgan Stanley, JP Morgan Chase, Franklin Templeton, Standard Chartered, and HSBC.

Macquarie is the first Australian bank to leave the Alliance. Australia’s “Big Four” and the Bank of Queensland are all members of the group, which aims to contribute to reaching net zero by 2050.

In a statement to The Epoch Times, Macquarie Group said it had partnerships across the public and private sectors to “support the energy transition and advance solutions to climate challenges.”

However, the financial group said it had put enough “building blocks” in place to assist in decarbonisation and no longer needed to be a member of the group.

“In 2022, we set out our strategy on Net Zero and updated it in 2023,” the statement said.

Related Stories

“Those principles continue to guide activity as our climate strategy evolves to meet the needs of our clients and the requirements of governments and regulators, which differ across markets.

“The Net Zero Banking Alliance (NZBA) helped develop global frameworks and assisted member banks as they established their initial decarbonisation plans. With those building blocks now in place, like many peers, Macquarie will no longer be a member of NZBA, as we focus on updating and delivering our plans and reporting in line with regulatory requirements.”

The group said further updates on their progress would be included in their annual report, which is expected to be released in May.

Macquarie Group said it would continue to develop “practical solutions” for clients and communities, including investment in climate mitigation.

“We also believe that the transition must be managed, orderly and just, which is why we have continued to support carbon intensive industries to reduce their emissions and continue to work with oil and gas companies, in recognition that much of the world will depend on carbon-intensive industries for a period as mitigation solutions are implemented,” the Group said in its statement.

Queensland Nationals Senator Matt Canavan praised the move to split with the NZBA.

“Congratulations to Macquarie Bank for being the first Aussie bank to leave the failing NZBA,” he said on X.

“Let’s hope all our banks get back to supporting all Australian businesses to make our country stronger. That should be their sole focus.”

According to the United Nations Environment Programme Finance Initiative, the NZBA provides frameworks, guidance and learning opportunities to support members to achieve Net Zero targets by 2030 or sooner.