HSBC Targets Net-Zero Emissions, $1 Trillion in Green Financing
October 09 2020 - 9:48AM
Dow Jones News
By Maitane Sardon
HSBC Holdings PLC said Friday that it will aim to achieve
net-zero carbon emissions across its portfolio of customers by
2050, as its works to align its financed emissions with the Paris
Agreement on climate change.
HSBC also said it will aim to provide between $750 billion and
$1 trillion in financing over the next ten years to help clients in
all sectors lower their environmental impact.
The British bank, which has come under fire from investors and
environmental groups for having a weaker policy on lending to the
coal industry than some of its European peers, didn't give any
details on whether it plans to curb its fossil-fuel financing or
stop lending to the coal sector.
Coal is one of the highest carbon emitters and has an important
presence in Asia, where HSBC makes half of its revenue. Half of the
world's coal is produced and consumed in China and the
International Energy Agency expects demand for the fossil fuel to
rise steadily over the coming decades in Southeast Asia.
HSBC also said it aims to achieve net-zero emissions in its
operations and supply chain by 2030. It will target a $100 million
investment in clean technology within its technology venture debt
fund and donate $100 million to scale climate innovation ventures
and renewable energy by 2025.
"As we enter a pivotal decade of change, we have a landmark
opportunity to accelerate our efforts to build a healthier, more
resilient and more sustainable future," said Chief Executive Noel
Quinn.
The bank said it will "increasingly" prioritize financing and
investment that contributes to the low-carbon transition and will
apply "a climate lens" to financing decisions. It added that it
will make disclosures that are aligned with the Task Force on
Climate-Related Financial Disclosures' guidelines.
The announcement was deemed insufficient by some environmental
groups that have been pressuring the bank to phase out coal and
stop backing companies involved in further oil-and-gas extraction
and infrastructure.
"Net-zero ambitions need to be backed up by fossil-fuel
phase-out targets to be credible," said Jeanne Martin, senior
campaign manager at U.K. nonprofit ShareAction. "As Europe's second
largest financier of fossil fuels, we urge HSBC to commit to a
global coal phase-out and take immediate steps to curb its
fossil-fuel financing."
HSBC's announcement is the latest environmental pledge by a big
bank this year. JPMorgan Chase & Cp., the biggest U.S. bank and
one of the biggest fossil-fuel financiers, said earlier this week
that it would push its clients to align with the Paris Agreement
and work toward reaching net-zero emissions by 2050. British bank
Barclays PLC also committed in March to become a net-zero bank.
Swiss bank UBS Group AG and NatWest Group PLC, the former RBS
group, have recently tightened their restrictions on fossil
fuels.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
October 09, 2020 09:33 ET (13:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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