HSBC Targets Net-Zero Emissions, $1 Trillion in Green Financing

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 [e-mail]

(END) Dow Jones Newswires

October 09, 2020 09:33 ET (13:33 GMT)

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