Thursday 17 March 2022
HSBC banks on climate transition plan to achieve net zero goal
HSBC has made a commitment to publish a climate transition plan in 2023 and review its financing and investment policies as part of its drive towards reaching net zero by 2050.
The plan will explain how the banking giant will implement its net zero ambition, bringing together its climate strategy and 2030 and 2050 science-based targets and reporting annually on its progress.
The announcement follows months of criticism from green campaign groups over its approach to reducing financed emissions.
HSBC said it will consult with “leading independent scientific, international and other bodies” to assess how its policies can be updated to best reflect emerging science, international guidance and good industry practice.
This will include a wider energy policy that includes conventional and unconventional oil and gas, methane emissions and environmentally-critical areas such as the Arctic, Amazon and UNESCO World Heritage sites.
The bank has committed to phase out its financing of fossil fuels to align with the Paris climate agreement, building upon recent announcements, which include the phase-out of its thermal coal financing.
Dr Celine Herweijer, Group Chief Sustainability Officer said: “HSBC understands that the sudden energy crisis that the world finds itself in will necessitate actions in the short-term around energy security. Our clients, like us, are operating in this new reality but the longer term imperative over the coming decades to transform business models for a net zero future remains unchanged. If anything, the current crisis should galvanise the need to supercharge investment into the clean energy transition.”
“We believe we can have the biggest impact on climate action by actively engaging our clients on their transition, focusing on the need for robust and credible transition plans and by providing the financing and advisory solutions that help unlock the investments needed. We know we need to transform the bank to achieve this and we want to demonstrate the actions we are taking to make this happen.”
