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HSBC Asset Management global head of Sustainability to depart

HSBC announced on Friday that the top executive in sustainable finance at its asset management division will be leaving the company. This is the latest departure from the bank during a period of restructuring under the new chief executive.

Erin Leonard's departure as global head of sustainability for HSBC Asset management follows that of Celine Herweijer who left the bank at the end last year. The bank is reassessing its environmental, social, and governance policies under Georges Elhedery, CEO.

Both before and after Donald Trump's election, there has been a growing pushback in the United States against ESG. HSBC is one of the mid-sized banks that focuses on international corporations. Many financial firms have reduced their commitments to climate change and other issues.

Leonard was the head of HSBC Asset Management’s Sustainability Office. This office, created in 2021, is responsible for managing the sustainable investment efforts and strategy. She was also in charge of the company's diversity, equity and inclusivity initiatives.

A spokesperson for asset manager stated that the responsibilities of this office had been spread across the other businesses in the asset management division.

Other sustainability-related initiatives have been consolidated under the Responsible Investment team led by Cathrine de Coninck-Lopez, the spokesperson added.

Leonard was also a member of Asset Manager's Management Committee, but it is unclear if she was removed from this position. HSBC refused to comment.

Elhedery, who assumed the role of CEO six months ago, has made a significant impact on the bank by cutting the number of senior managers in the bank and restructuring the operating divisions.

By the end of 2026, the bank will have saved $1.5 billion annually. This is equivalent to 8% of its total staff costs.

HSBC angered campaigners by abandoning its goal of reaching zero emissions in its entire business by 2030 due to the slow pace of changes in the real-economy.

The bank said to shareholders that it is committed to becoming a zero-emission bank by 2050. It has also begun to review its emission targets linked to loans and associated policies.

The bank also hired new executives including Danny Alexander, a former UK politician to lead a new unit focusing on infrastructure financing and project finance related to the low carbon transition.

HSBC Asset Management will manage $179 billion by 2024 in ESG and Sustainable Investment Strategies. It is a member of the Net Zero Asset Management initiative, a U.N. backed group of asset management companies working to align investment to net zero. (Reporting and editing by Virginia Furness, Simon Jessop, and Nia William)

(source: Reuters)