HSBC Joins U.S. Banks in Exiting Net-Zero Alliance

HSBC’s exit from the Net-Zero Banking Alliance follows U.S. peers raising fresh doubts over collective climate pledges despite its 2050 net-zero ambitions.

In a move that reflects changing strategies in environmental sustainability, HSBC exits climate coalition, joining a rising number of U.S. and global banks stepping back from the Net-Zero Banking Alliance (NZBA). While the bank credited the group for helping shape its early decarbonization roadmap, it now claims to have the scientific tools and strategic frameworks needed to move forward alone. HSBC reiterated its long-term bank climate commitments, including reaching net-zero financed emissions by 2050, and stressed its continued focus on supporting clients through their climate transition efforts.

While peer companies like JPMorgan, Citi, Morgan Stanley, Macquarie, and Bank of Montreal have already stepped away citing political or operational concerns, HSBC’s exit puts Europe’s largest lender in sharp focus. Critics argue the decision chips away at sector-wide cohesion and undercuts broader climate goals especially in light of HSBC’s revised 2030 financed emissions target and a recent shake-up of its sustainability leadership. The HSBC exits climate coalition move drew swift reaction; advocacy group Share Action called it “troubling,” warning that such a step could damage investor confidence and weaken Net-Zero Banking Alliance influence. As the NZBA withdrawal trend grows, questions about long-term bank climate commitments only deepen.

For sustainability leaders in finance and corporate governance, the fact that HSBC exits climate coalition marks more than a shift it signals a turning point. As alliances like the Net-Zero Banking Alliance loses members, banks are clearly moving toward customized bank climate commitments, relying more on internal metrics and science-driven strategies. But as this NZBA withdrawal trend continues, the risk grows: without collective accountability, tracking financed emissions and comparing progress across institutions could become far less transparent. Still, the HSBC exits climate coalition move carries weighty risks. Without collective oversight, emissions estimates grow less transparent, and cross-comparisons between firms lose clarity. As the NZBA withdrawal trend continues, those monitoring progress on bank climate commitments will need to dig deep into HSBC’s revised transition strategy later this year and rethink how to assess financed emissions in a world without shared benchmarks.