HSBC, a globally recognised bank offering a diverse array of services, announced the launch of its inaugural Net Zero Transition Plan, marking a significant step in its commitment to supporting the transition to a net-zero carbon future. As reported by ESG Today, the comprehensive strategy builds upon the climate goals set by HSBC in recent years.
This new plan is a continuation of the bank’s initial commitment in 2020 to achieve net zero by 2050, aligning its financing activities with the objectives of the Paris Agreement. The overarching goal is to reduce the carbon emissions associated with HSBC-financed clients and projects to net zero by 2050 or earlier.
HSBC’s strategy involves a strong focus on financing and investing in low-carbon transition projects. The bank has set an ambitious target of providing $750 million to $1 billion in finance and investment by 2030 to support its customers in their transition efforts.
At its core, HSBC, a leading global financial institution, is dedicated to offering a wide range of banking services worldwide. The Net Zero Transition Plan underscores HSBC’s commitment to utilising its financing and investment capabilities to actively contribute to decarbonisation, sector transitions, and the implementation of climate-friendly strategies.
The comprehensive plan outlines HSBC’s approach to achieving its climate ambitions, emphasising the use of its financing and investment decisions to facilitate decarbonisation across various sectors. Recognising the challenges of transitioning from a substantial financed emissions footprint, especially in emissions-intensive sectors, HSBC has set interim targets to reduce its financed emissions in major carbon-intensive sectors.
The plan provides specific strategies for key sectors such as oil & gas, power and utilities, and heavy industries like cement, iron, steel, aluminium, automotive, and aviation. Notable actions include discontinuing financing for new oil and gas projects and new metallurgical coal mines, while actively supporting cleaner energy projects and early-stage technologies for hard-to-abate sectors.
HSBC’s commitment extends beyond its clients, encompassing the integration of net-zero principles into its business operations, including product and service offerings, risk management policies, and governance structures. The bank is also dedicated to collaborative efforts with governments, regulators, and the finance industry to influence standards and policies conducive to the net-zero transition.
Celine Herweijer, Group Chief Sustainability Officer at HSBC, emphasised the bank’s strategic influence on emissions reduction, stating, “We have an opportunity to support them to make the transition and catalyse the new economy, following the science and leveraging our entrepreneurial spirit.” Noel Quinn, Group Chief Executive at HSBC, echoed this sentiment, highlighting the bank’s pivotal role in supporting the economic transformation required to achieve net zero.
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