HSBC has revised its target for achieving net-zero carbon emissions, pushing the goal from 2030 to 2050, citing slow economic progress as a key factor. The bank now aims for a 40% reduction in emissions across its operations, business travel, and supply chains by the end of this decade, significantly lowering its previous targets. This shift has raised concerns among climate campaigners, who fear that major financial institutions are retreating from their climate commitments.
HSBC Pushes Back Net-Zero Target to 2050, Citing Client Challenges and Policy Limitations
HSBC’s chief sustainability officer, Julian Wentzel, explained that the bank’s decision was influenced by the challenges faced by clients, including technological and policy limitations. The updated 2050 target aligns HSBC with other large financial institutions like Goldman Sachs and Barclays, who also pushed their climate goals further into the future. The bank also announced an internal review of its emission targets related to loans, signalling potential adjustments to its lending practices.
Wentzel emphasized that the new strategy would allow for more flexibility, particularly in the oil and gas sector, without necessarily changing specific financing policies. HSBC had initially set its 2030 net-zero goal with plans to use carbon credits to offset emissions, but this approach no longer aligns with recent guidelines from the Science Based Targets Initiative.
Critics Slam HSBC’s Delayed Net-Zero Target, Citing Broader Trend Among Banks
Critics, such as Christophe Etienne from Reclaim Finance and Zahra Hdidou from ActionAid UK, expressed disappointment, arguing that HSBC’s extended timeline undermines the urgency needed to address climate change. They also voiced concerns about a broader trend among banks, especially in the U.S., to scale back on their climate pledges, possibly influenced by shifting political dynamics under President Donald Trump. Despite these criticisms, Wentzel clarified that HSBC’s decision was made before any changes by U.S. banks.
