HSBC sets tougher emissions reduction targets for oil and gas clients

The bank has pledged to reduce oil and gas financed emissions by 34% by 2030

Big Zero Report 2023

HSBC has unveiled today new targets related to its finances that are linked to the oil and gas industry and utility sector.

The banking giant has committed to reducing emissions associated with loans made to its oil and gas clients by 34% by 2030.

It is estimated that HSBC’s on-balance sheet financed emissions for oil and gas in 2019 were around 35.8 million tonnes of carbon dioxide equivalent.

The bank has also targeted a 75% reduction in power and utilities financed emissions intensity this decade from its 2019 baseline.

This target includes scope 1 and 2 emissions and upstream industries such as power generation.

Group Chief Sustainability Officer Dr Celine Herweijer said: “The science is clear that global emissions must significantly reduce this decade to limit global warming to 1.5°C.

“Our interim targets for these high emissions sectors will be embedded into business decision-making. The targets are science-based and highlight to our customers the level of decarbonisation we need to see across our portfolio by 2030.”

Two months ago, HSBC said it expected all its clients to set out plans to exit the fossil fuel industry by the end of 2023.

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