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HSBC ditches 2030 net-zero emissions target

HSBC ditches 2030 net-zero emissions target

HSBC has announced that it will not be achieving its goal of achieving net-zero emissions in its entire business by 2030 due to the slow pace of change in real economy.

The biggest bank in Europe said that it expects to achieve a 40% reduction in emissions by 2030, across all of its operations and business travel. It also aims to reach the more ambitious target of net-zero by the middle century. It announced an internal review on targets for emissions related to its loans.

In its annual report, the bank said that it had a limited impact on companies in terms of technological advancements, demand from the market and policy influencing change.

HSBC said that its original target was based upon the ability to offset certain supply chain emissions using carbon credits, which is not in line with the recent guidelines from Science Based Targets Initiative which evaluates and approves climate targets for corporations.

The bank's Chief Sustainability Officer resigned several months ago, after Georges Elhedery, the chief executive of the bank, removed the position from the bank's Executive Committee in a reshuffle.

Activists expressed concern that the decision indicated a retreat from HSBC’s climate ambitions, adding to fears that the banking sector as a whole is pulling back on its emission reduction commitments.

Morgan Stanley has lowered its expectations of emissions reductions from its corporate loan portfolio. A number of U.S. financial institutions have also left a climate alliance. (Reporting and editing by Bernadettebaum and David Goodman.)

(source: Reuters)