At the recent Annual General Meeting of HSBC (Hongkong and Shanghai Banking Corporation), a coalition of 30 institutional investors managing approximately £1.2 trillion ($1.6 trillion) in assets urged the bank to reaffirm its commitment to achieving net-zero emissions. This call to action follows HSBC’s decision earlier this year to delay its 2030 net-zero target for its operations and supply chain by two decades, now aiming for 2050. Additionally, the bank announced a review of its interim targets for reducing financed emissions in high-carbon sectors, attributing the delays to external factors such as technological advancements, market demand, and government policies. The investor group, coordinated by the responsible investment NGO ShareAction, expressed concern over these developments, highlighting the removal of the Chief Sustainability Officer from the executive committee as a troubling sign of the bank’s shifting priorities.

Despite HSBC’s previous leadership in climate initiatives, including halting financing for new oil and gas projects, the recent changes have cast doubt on its long-term climate strategy. Jeanne Martin, Head of the Banking Programme at ShareAction, emphasized that HSBC’s significant exposure across Europe and Asia makes it particularly vulnerable to climate-related risks. She warned that investors are now being left uncertain about the bank’s dedication to managing the financial risks associated with global warming. While HSBC’s outgoing chairman, Mark Tucker, reiterated the bank’s overall net-zero goal by 2050, he acknowledged that near-term progress has been hindered by broader economic challenges. The investor group has called for the bank to engage in dialogue with shareholders to clarify its climate commitments and ensure transparency in its transition plans.