Australia-based financial services group Macquarie announced that it has decided to leave the Net-Zero Banking Alliance (NZBA), expanding what had been a primarily North America-focused series of exits from the UN-backed coalition of banks dedicated to advancing global net zero goals through their financing activities.

While Macquarie did not explicitly state reasons for its departure from the net zero group, the firm said in a statement that its net zero strategy will “continue to guide activity,” but that its climate strategy is evolving to “meet the needs of our clients and the requirements of governments and regulators.”

Macquarie joined the NZBA in 2021, and has put in place goals to align its financing activity with the global goal of net zero emissions by 2050. Macquarie launched its Net Zero strategy in 2022, and set interim financed emissions reduction targets for the oil and gas, coal and automotive sectors, and added the Australian residential mortgage lending in 2023, bringing 80% of the bank’s balance sheet exposure to carbon-intensive sectors under financed emissions reduction goals.

Macquarie was also a founding Principal member of GFANZ, which until recently acted as an umbrella group for financial sector net zero coalitions, including the NZBA, but has recently announced a restructuring to focus on enabling the mass mobilization of capital to support the low carbon transition. Macquarie remains listed as a member of the GFANZ Principals Group.

After rapidly expanding from 43 banks at launch to over 140 banks representing $74 trillion in 2024, members of the group have come under significant pressure, particularly from Republican politicians in the U.S., who have been warning financial institutions including banks, insurers, asset owners and investors of potential legal violations from their participation in climate-focused alliances and of plans to exclude the companies from state business, as part of a broader anti-ESG political campaign.

Shortly after the election of Donald Trump, U.S.-based banks began departing the group, beginning with Goldman Sachs, and ultimately including every major Wall Street bank, followed in January by all major banks in Canada.

Macquarie, the first major Australian bank to exit the alliance, has a substantial business presence in the U.S., with 34% of the company’s net profit contribution originating in the Americas in 2024. In October, Macquarie opened a new 250,000 square foot Americas headquarters in mid-town New York.

Discussing the firm’s move to leave the NZBA, Macquarie acknowledged the alliance’s work in developing global frameworks and helping banks to establish decarbonization plans.

Macquarie added:

“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.”