Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

HSBC criticised for net-zero emissions plan that fails to commit to ending fossil fuel finance

Europe’s second-largest financier of fossil fuels lays out plan to go green; but campaigners aren’t convinced

Ben Chapman
Monday 12 October 2020 03:36 EDT
Comments
HSBC has not laid out a timeline for when it will begin to phase out fossil fuel financing
HSBC has not laid out a timeline for when it will begin to phase out fossil fuel financing (Reuters)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

HSBC has pledged to reach net-zero carbon emissions by 2050 but campaigners criticised the plan for failing to make any firm commitments in the near-term.

Europe's biggest bank and second-largest financial backer of fossil fuel companies said on Friday it would reach net zero in its own operations by 2030.

It also plans to support its customers with $775bn to $1 trillion (£580bn to £770bn) of finance to aid their energy transition.

In an open letter to clients, HSBC chief executive Noel Quinn said the bank was responding to customers' concerns about climate change.

"We know this is an issue that many of our 40 million customers care deeply about, particularly in our retail and private banking businesses," Mr Quinn wrote.  

"They care as citizens, consumers, and business owners. We are committed to developing products that allow them to invest or participate in efforts to bring about a more sustainable global economy.

Campaigners said the plan lacked credibility as the bank laid out no timeline for when it would begin to phase out support for coal and companies involved in further oil and gas extraction.

“A 550-word statement and not a single concrete commitment made by HSBC. This is zero ambition, not ‘Net Zero Ambition,’ said Adam McGibbon, UK energy finance Campaigner, at Market Forces.

Becky Jarvis, coordinator of Fund Our Future UK, a network of campaign groups, said: “HSBC’s net-zero commitment is a bit like saying you’ll give up smoking by 2050, but continuing to buy a pack a week, or even smoking more.

"Any further financing of oil, gas, and coal expansion today is utterly at odds with a net-zero commitment by 2050."

Jeanne Martin, senior campaign manager, ShareAction, welcomed HSBC’s commitment to net zero but said it needed to be backed up by targets to phase out fossil financing.  

"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.  

"This would leave no doubt of the bank’s commitment to net zero by 2050 – and give the world a chance to avert the worst consequences of climate change.”

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in