HSBC Pledges $100 Billion Through 2025 To Combat Climate Change
Global financial services company HSBC has announced that it will provide $100 billion in sustainable financing and investment by 2025 in an effort to combat climate change and support sustainable growth in its local communities.
This is by no means HSBC’s first foray into combating climate change, nor will it likely be the last. In November of 2015 the financial services company pledged to commit $1 billion to a green bond portfolio — a sector it has helped lead over the last decade. Not long afterwards, HSBC Holdings raised €500 million in its first green bond.
“For more than a decade, HSBC has helped clients break new ground in the green bond markets in Europe and Asia, and to finance some of the biggest climate-friendly infrastructure projects in the world,” said Group Chief Executive Stuart Gulliver. “The $100 billion commitment that we are announcing today acknowledges the scale of the challenge in making a transition to a low-carbon future. We are committed to being a leading global partner to the public and private sectors as they make that transition.”
In addition to its $100 billion financing commitment, HSBC also made four separate pledges in its effort to tackle climate change:
- Source 100% of its electricity from renewable sources by 2030, with an interim target of 90% by 2025. By signing long-term agreements with suppliers, HSBC aims to support the development of new renewable power facilities.
- Reduce its exposure to thermal coal and actively manage the transition path for other high-carbon sectors. This includes discontinuing financing of new coal-fired power plants in developed markets and of thermal coal mines worldwide.
- Adopt the recommendations of the Task Force on Climate-related Financial Disclosures to improve transparency. In its next two Group annual reports, HSBC will give more details on its approach to climate-related risks and opportunities.
- Lead and shape the debate about sustainable finance and investment. This includes promoting the development of industry-wide definitions and standards.
Beyond large-scale announcements, HSBC has been working on the homefront to improve its own environmental performance, having over the past 12 months reduced its water usage by 9%, carbon emissions by 9%, and energy consumption by 13%, as well as signing Power Purchase Agreements (PPAs) with clean energy producers to source 24% of its electricity needs from renewable energy sources.
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