HSBC will no longer strive to achieve net-zero emissions across its operations and supply chains by 2030. The bank has blamed the slow pace of decarbonisation globally for scaling back its climate ambitions.
The business first set the 2030 emissions target in 2020 and opted for a 2019 baseline.
Announcing its annual results this week, HSBC noted “good” progress on decarbonising its own operations but said that change was “proving slower” across the supply chain. It pointed the finger at factors outside of its control.
“As a bank, our ability to finance our customers’ transition and, in turn, progress toward and meet our targets, relies on decarbonisation solutions scaling across sectors, alongside growing demand from our customers for capital to transition their business models,”
HSBC’s annual report states.
“We are limited by, and cannot on our own overcome, the present lag in policy measures and the overall slower pace of the transition… These factors put our customers’, and our own, net-zero ambitions at risk.”
With this in mind, HSBC said it would need to rely on carbon offsetting to a significantly greater extent than anticipated to meet its original 2030 target.
HSBC is therefore delaying its net-zero emissions target for operations, travel and supply chains to 2050. For 2030, it will strive for a 40% reduction against a 2019 baseline.
HSBC will also review its targets for reducing financed emissions – those generated by the businesses and projects which it financially supports. It has sector-specific 2030 emissions targets for financed emissions in oil and gas; power and utilities; cement; iron, steel and aluminium; aviation; automotive and thermal coal mining.
It is disappointing to see that HSBC has chosen to further weaken its climate target. If it cannot even strive to reduce emissions from its own operations and supply chain, there is little hope that it will trigger meaningful change through its investments.
“HSBC claims the transition is moving too slowly, yet it forgets that its own financial services are locking the world into fossil fuel dependence, exacerbating climate change.”
