Bank separates from New Zealand Bankers' Association following elimination of 1.5-degree warming goal
Triodos Bank Exits Net-Zero Banking Alliance Over Climate Concerns
The Net-Zero Banking Alliance (NZBA) underwent a significant overhaul in April 2025, resulting in the exit of several major banks, including key North American banks such as UBS and Barclays. The revision aimed to broaden membership by accommodating banks from countries less aligned with stringent climate targets. However, one of the most notable departures was that of Triodos Bank.
The Dutch sustainable bank, known for its commitment to climate action, voiced deep concern over the shift away from binding agreements in the new NZBA framework. Triodos Bank, which had been actively working on climate action, now plans to shift its focus towards more suitable alliances.
Under the previous NZBA framework, members were required to align their investment and lending activities with the goals of the Paris Agreement. The overhauled framework, however, effectively abandons the NZBA's commitment to a 1.5°C target as outlined in the Paris Agreement. The new framework offers NZBA members more flexibility in choosing net-zero pathways that align with the temperature goals of the Paris Agreement (2°C or below, striving for 1.5°C).
Triodos Bank criticized the alliance for diverging from urgent climate goals and fossil fuel finance phase-out commitments. The bank demands banks to adopt robust policies to end fossil fuel financing, commit to just transition principles, and exclude ‘false solutions’ like certain types of biomass, carbon capture, or nuclear power from green finance definitions.
Despite leaving the NZBA, Triodos Bank intends to continue working with other banks on climate action. The bank is focusing on alternative "meaningful" alliances at European and global levels, including the Global Alliance for Banking on Values, the European Banking Federation, and UK Finance.
In a move to increase its emissions reduction ambition, Triodos Bank has targeted a cut in financed emissions from 32% to 42% by 2030. The bank's increased emissions reduction target is more ambitious than the previous one.
The NZBA, on the other hand, claims it remains committed to supporting banks genuinely driven to lead the net-zero transition. The alliance stresses the need for bold and consistent climate leadership despite current barriers. However, the restructuring of its broader umbrella group, GFANZ, into a standalone entity focusing on addressing capital mobilization barriers also reflects a shift in strategic priorities away from enforcing prior net-zero commitment standards.
This reflects a clear split: NZBA seeks to maintain relevance with a broader bank base but at the cost of stricter climate alignment, whereas Triodos Bank rejects this dilution and insists on uncompromising climate action by banks. Triodos Bank's decision to leave the NZBA and focus on alternative alliances suggests a dissatisfaction with the direction of the alliance's new framework.
[1] Net-Zero Banking Alliance Overhaul [2] GFANZ Becomes Standalone Entity [3] Triodos Bank Leaves NZBA [4] Triodos Bank's Climate Ambition
- Triodos Bank, a bank known for its environmental science focus and commitment to climate action, departed from the Net-Zero Banking Alliance (NZBA) due to concerns about the alliance's shift away from binding climate targets and increased flexibility in choosing net-zero pathways.
- The Dutch bank, which had been working actively on climate change, now aims to direct its efforts towards other global alliances, including the Global Alliance for Banking on Values, the European Banking Federation, and UK Finance, while increasing its emissions reduction target from 32% to 42% by 2030, demonstrating a more aggressive stance on finance and business towards climate change.
