Latest News

HSBC has joined US banks in quitting the Climate Coalition

HSBC, the British bank, joined major U.S. banks in leaving the climate coalition as the ambitions of some governments to achieve net zero dwindled.

HSBC stated that while it acknowledged the role played in the development of guiding frameworks for banks to set emission-reduction goals by the Net Zero Banking Alliance (NZBA), the foundation had now been established and the bank decided to withdraw as it prepared to update its net zero transition plan.

"We are resolutely committed to supporting our clients in achieving their transition goals and making progress toward our Net Zero by 2050 goal," said an HSBC representative.

This year, global peers such as JPMorgan Citi, Morgan Stanley Macquarie, and Bank of Montreal all left the group. The group was founded in 2021 with the aim of aligning the financial sector to the global goal to limit global warming. This included mobilizing more money to fund environmentally-friendly activities and setting members targets to reduce emissions related to their business.

HSBC, in February, dropped a target for 2030 to reduce emissions. It blamed the slow progress toward net zero in real economy.

Jeanne Martin said, "We condemn HSBC’s decision to leave NZBA. This is yet another troubling sign about the bank’s commitment to addressing climate change."

The UK government is legally bound to achieve net-zero emission by 2050.

HSBC Chief Sustainability Officer Julian Wentzel announced in February that the bank would adopt a "more calculated approach" when lending to fossil fuel industries, sparking fears among activists that the bank might backtrack on its climate commitments.

HSBC's website states that its targets for reducing emissions in relation to its loan book will "continue to reflect the latest scientific evidence as well as credible industry-specific paths".

Banks in the U.S. have been under pressure by some Republican politicians, and have been asked to testify to policymakers. They have been accused of conspiring to unfairly punish fossil fuel producers via their membership of NZBA.

The Trump administration consistently takes a negative stance on global efforts to combat climate change. It has pulled out of the Paris Agreement for the second time on climate, cut development aid, encouraged an increase in fossil fuel production, and rolled back environmental regulations.

The NZBA amended rules in response to legal concerns, which were then voted upon by members of the NZBA in April.

A spokesperson stated that the NZBA was given strong support in this vote in order to continue to facilitate the conditions necessary for bank clients to invest in net-zero transformation. (Reporting and editing by Paul Simao, Elaine Hardcastle, and Simon Jessop)

(source: Reuters)