HSBC pledges $100 billion of finance by 2025 to combat climate change
HSBC has pledged to provide $100 billion in financing and investment by 2025 to help combat climate change.
The U.K.-based bank, whose operations are increasingly concentrated in Asia, said it will make up to $100 billion available for financing low-carbon projects, while stopping the financing of mines that produce coal for power generation. It also promised to get all of its power from renewable sources by 2030.
It’s the latest attempt by the world’s biggest banks to respond both to the phenomenon itself and to investors’ concerns about the associated risks. JPMorgan Chase made a similar commitment in July, promising $200 billion of finance for clean energy projects.
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.