A day after London-based financial services giant HSBC pledged to provide $100 billion in sustainable financing investment by 2025 to combat climate change, the bank has joined forces with RE100 alongside its commitment to source 100% of its electricity from renewable energy sources by 2030.
On Monday, HSBC announced five new commitments the company will take to “tackle climate change and support sustainable growth in the communities it serves” that included providing $100 billion in sustainable investments through 2025 as well as committing to source 100% of its electricity from renewable energy sources by 2030.
Unsurprisingly, therefore, a day later it was revealed that HSBC had also joined the RE100 initiative, a collaborative and global initiative designed at promoting and supporting businesses in transitioning to 100% renewable energy. HSBC therefore becomes the 114th member of RE100, which is run by The Climate Group and CDP (formerly the Carbon Disclosure Project).
HSBC has committed to sourcing 100% of its electricity needs from renewable energy sources by 2030, with an interim target of 90% by 2025. HSBC will be working to sign long-term Power Purchase Agreements with renewable energy suppliers while also supporting the development of new renewable energy facilities.
Further, HSBC has committed to ceasing any and all financing for new coal-fired power plants in developed markets, and of thermal coal mines worldwide. The bank will also adopt the recommendations of the Task Force on Climate-related Financial Disclosures to improve transparency.
“HSBC are demonstrating climate leadership by committing to 100% renewable electricity in their own operations, as well as re-orienting their investment decisions,” said Sam Kimmins, Head of RE100, The Climate Group. “As well as being a good business investment, focusing entirely on long-term PPAs and measures that support the development of renewable electricity infrastructure means HSBC are actively bringing more renewable energy online.”
“Joining RE100 is an opportunity to actively collaborate with various players in the market,” added Andy Maguire, Group Chief Operating Officer, HSBC Holdings plc.
“We plan on working closely with RE100, other corporates, governments and regulators to open up renewable energy markets and support the decentralization of power generation across our operational centers. This will enable HSBC and other corporates to develop PPAs globally and support the transition to a low-carbon economy and 2-degree world.”
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