HSBC Holdings Plc and Societe Generale SA are among banks that have withdrawn applications to get their climate goals approved by a United Nations-backed group widely regarded as the gold standard-setter for credible net zero claims.

The banks will no longer seek verification from the Science Based Targets initiative, according to people familiar with the matter. ABN Amro Group NV and Standard Chartered Plc have also withdrawn their bids, representatives for the banks said. The news was earlier reported by Reuters.

Spokespeople for the banks said they would still comply with standards set by the Net-Zero Banking Alliance, a UN-convened group of which they all remain members.

SBTi recently updated its near-term target framework for the finance industry; it’s still finalizing its approval process for long-term net zero plans. Demand for its stamps of approval is growing as investors increasingly look for ways to ensure that the net zero claims of their portfolio companies are credible.

StanChart said its decision to no longer seek SBTi verification is based on an assessment that the certification body’s latest proposal “lacks sector guidance that adequately considers the transition of our clients and markets,” according to an emailed statement. The UK bank said it’s instead pursuing “alternative third-party assurance. We recognize that SBTi has a role to play in the wider sustainability ecosystem and otherwise remain engaged with them on relevant initiatives.”

A spokesperson for ABN Amro said the Dutch bank isn’t worried about the loss of credibility that might stem from withdrawing its bid, because it also has disclosure obligations under NZBA. SBTi isn’t the only standard-setter, the person said.

A spokesperson for HSBC said the bank is “working to set financed emissions targets across our portfolio in line with NZBA guidance.”

A spokesperson for SocGen declined to comment on the bank’s relationship with SBTi.

NZBA members commit to cutting their financed emissions, namely those enabled from lending and investing, to net zero by 2050 and also to set interim decarbonziaton targets for the most carbon-intensive sectors of their portfolios.

According to SBTi’s website, a number of big European banks are still seeking to get their net zero claims verified. However, its certification isn’t being sought by major US-based banks.

The development comes as the COP28 climate summit gets underway in Dubai. Unlike last year, when talks took place in Egypt, this year’s event is set to be well attended by the world’s biggest banks. The COP28 president, Abu Dhabi National Oil Co. Chief Executive Officer Sultan Al Jaber, has said he wants this year’s summit to bring as many diverse groups together as possible.

--With assistance from Cagan Koc and Alexandre Rajbhandari.