A coalition of 30 institutional investors, managing $1.6 trillion in assets, has publicly urged HSBC to reaffirm its net zero climate goals, following concerns that the bank may be scaling back its climate strategy.
Delayed Targets and Investor Concerns
At HSBC’s annual general meeting (AGM), responsible investment NGO ShareAction led the call for the bank to urgently reaffirm its commitment to climate action. The pressure follows HSBC’s February announcement that it was postponing its net zero operational target from 2030 to 2050 and placing key emissions goals under review.
HSBC cited global decarbonization challenges, stating that technological advancements, energy diversification, market demand, and government policies were affecting its ability to meet short-term financed emissions targets.
Leadership Changes and Governance Shifts
Adding to investor concerns, HSBC removed the Chief Sustainability Officer (CSO) role from its Group Executive Committee in November 2024, following the departure of Celine Herweijer. Critics argue that these governance changes signal a deprioritization of climate strategy.
Jeanne Martin, Head of ShareAction’s Banking Programme, stated:
“HSBC has sent deeply concerning signals around whether managing the rapidly multiplying financial risks of global heating is still one of its priorities.”
HSBC’s Response and Ongoing Scrutiny
At the AGM, outgoing Chairman Mark Tucker reaffirmed HSBC’s commitment to becoming a net zero institution by 2050 but acknowledged the challenges of aligning short-term targets with market realities.
Following the meeting, ShareAction expressed disappointment that HSBC did not directly address concerns about weakening short-term climate targets but welcomed the bank’s willingness to engage in further discussions.
The pressure from institutional investors highlights growing scrutiny on banks’ alignment with climate science and transition plans, particularly regarding whether long-term pledges are backed by credible interim actions.
