HSBC, a renowned global bank with a diverse portfolio of services, announced today the launch of its first Net Zero Transition Plan.
According to ESG Today, this groundbreaking strategy outlines HSBC’s commitment to finance and support the transition to net zero, building on the climate goals it has established over recent years.
The new plan is a follow-up to HSBC’s initial 2050 net zero target set in 2020. This ambitious target included aligning the bank’s financing activities with the Paris Agreement’s objectives. The plan involves reducing the carbon emissions of HSBC-financed clients and projects to net zero by 2050 or earlier.
HSBC aims to prioritize financing and investment in low-carbon transition projects and has set a substantial goal of supporting customers with $750m to $1bn in finance and investment by 2030 to aid their transition.
At its core, HSBC is a financial institution dedicated to providing a wide range of banking services globally. The Net Zero Transition Plan is a testament to HSBC’s commitment to leveraging its financing and investment capabilities to support decarbonization, sector transitions, and the implementation of climate-friendly strategies.
HSBC’s Net Zero Transition Plan is an extensive blueprint detailing the bank’s approach to achieving its climate ambitions. The plan focuses on using HSBC’s financing and investment decisions to support decarbonization across various sectors. HSBC acknowledges the complexities of transitioning from a significant financed emissions footprint, particularly in emissions-heavy sectors.
Since its 2020 net zero commitment, HSBC has set interim targets to reduce its financed emissions footprint in major carbon-intensive sectors. The plan provides a thorough overview of transition strategies for sectors like oil & gas, power and utilities, and heavy industries like cement, iron, steel, aluminum, automotive, and aviation. This includes ending financing for new oil and gas projects and new metallurgical coal mines, while supporting cleaner energy projects and early-stage technologies for hard-to-abate sectors.
The plan also underscores HSBC’s commitment to embedding net zero across its business operations, including product and service offerings, risk management policies, and governance structures. HSBC is also focused on collaborative efforts with governments, regulators, and the finance industry to shape standards and policies conducive to the net zero transition.
Celine Herweijer, Group Chief Sustainability Officer at HSBC, highlighted the bank’s strategic position to influence emissions reduction: “We are present in the regions, the markets and the sectors that arguably make the biggest impact in terms of future emissions. 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, also emphasized the bank’s role: “As one of the world’s largest international banks, HSBC is well placed to help support and finance the economic transformation required to reach net zero.”
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