LONDON, Aug 7 (Reuters) - Swiss lender UBS will

leave the Net-Zero Banking Alliance, following the departure of

major British banks Barclays ( BCS ) and HSBC ( HSBC ), as part of an annual

review of its sustainability and climate-related memberships.

The departure raises questions about the future of NZBA,

an initiative established in 2021 to help banks align with

global climate goals, including funding environmentally friendly

activities and setting emission reduction targets.

UBS said that although the alliance had provided

valuable frameworks for initial target-setting, the bank has

advanced its own capabilities and decided to leave.

Global peers including JPMorgan ( JPM ), Citi, Morgan Stanley ( MS ),

Macquarie and Bank of Montreal ( BNKD ) have all exited the group this

year as the U.S. increases its scrutiny of financial

institutions deemed to be supporting pro-climate policies.

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.

Barclays ( BCS ) said last week it had quit the group because

the departure of several global lenders has left the NZBA

no longer fit

to support the bank's green transition.

UBS said the group had played a valuable role in helping

banks establish initial target-setting frameworks in the early

days but had decided to leave now that the work had advanced and

the Swiss lender had bulked up its in-house capabilities.

"NZBA's strength lies in the commitment of its member

banks to lead the net zero transition," an NZBA spokesperson

said in an emailed comment. "This long-term work requires

courage, consistency and true leadership to stay on track, even

when faced with barriers to action."

Earlier this year, NZBA ditched some of its more

stringent membership rules in a bid to keep members. The group

said the move was a reflection of the

slow pace of change

in the real economy and to help appeal to emerging market

lenders.

Last month, UBS announced it was replacing its head of

sustainability Michael Baldinger, who was in the role of chief

sustainability officer until July 2025.

Baldinger was replaced by Christian Leitz, who adds the CSO

title to his current role as head of corporate responsibility

and corporate historian. UBS Group's sustainability strategy and

impact is overseen by Beatriz Martin Jimenez, who also sits on

the bank's board which includes the bank's philanthropy work.