*

Says NZBA helped in developing guiding frameworks

*

Says foundation now in place; will leave the NZBA

*

Preparing to update transition plan

(Recasts, adds HSBC ( HSBC ) spokesperson in paragraph four, NGO

reaction in paragraph six, NZBA response paragraph 10 and bullet

points)

By Simon Jessop and Virginia Furness

LONDON, July 11 (Reuters) - Britain's HSBC ( HSBC )

became the latest bank to leave the industry's climate coalition

on Friday, following in the footsteps of major U.S. lenders as

some governments' net zero ambitions cool.

HSBC ( HSBC ) said while it recognised the role played by the

Net-Zero Banking Alliance (NZBA) in developing guiding

frameworks to help banks set emissions-reduction targets, the

foundation was now in place and it had decided to withdraw from

the group as it prepares to update its net-zero transition plan.

"We remain resolutely focused on supporting our customers to

finance their transition objectives and on making progress

towards our net zero by 2050 ambition," an HSBC ( HSBC ) spokesperson

said.

Global peers including JPMorgan, Citi, Morgan Stanley,

Macquarie and Bank of Montreal have all exited the group this

year. The group was formed in 2021 to help align the sector with

the world's goal of limiting global warming, including by

mobilising more money for environmentally friendly activities

and setting targets for members to reduce emissions linked to

their business activities.

HSBC ( HSBC ) dropped a 2030 emissions-reduction target in February

blaming slow progress towards net zero in the real economy.

Jeanne Martin, Co-Director of Corporate Engagement said:

"We strongly condemn HSBC's ( HSBC ) decision to leave the NZBA, which is

yet another troubling signal around the bank's commitment to

addressing the climate crisis."

The UK government has a legally binding commitment to

reach net-zero emissions by 2050.

HSBC's ( HSBC ) Chief Sustainability Officer Julian Wentzel said in

February the bank would take a "more measured approach" to

lending to the fossil fuel industry, sparking concerns among

some activists that it would row back on its climate promises.

On its website, HSBC ( HSBC ) says that targets for cutting emissions

linked to its loan book would "continue to be informed by the

latest scientific evidence and credible industry-specific

pathways".

In the U.S., banks have come under pressure from some

Republican politicians and been called to testify before

policymakers who have accused them of colluding to unfairly

penalise fossil fuel producers through their membership of

groups like NZBA.

The Trump administration has consistently taken a critical

position on the world's efforts to fight climate change, pulling

out of the Paris Agreement on climate for the second time,

cutting development aid, encouraging a ramping up of fossil fuel

output and rolling back environmental regulations.

Legal concerns prompted the NZBA to amend rules which

members then voted on in April.

NZBA received strong backing in that vote to continue to

help facilitate the conditions needed for banks' clients to

invest in the net-zero transition, a spokesperson said.