A coalition of 30 institutional investors managing £1.2 trillion ($1.6 trillion) in assets has called on HSBC to restate its commitment to the net zero transition, citing serious concerns about the bank’s recent moves to scale back climate ambition. The intervention, coordinated by responsible investment NGO ShareAction, took place during HSBC’s Annual General Meeting on Friday.
The group criticised the bank’s decision earlier this year to delay its 2030 target for achieving net zero emissions in its operations and supply chain by two decades, pushing the deadline to 2050. HSBC also announced a review of its interim targets to cut financed emissions in high-carbon sectors, blaming the slow pace of global decarbonisation and external dependencies such as technological development, government policy, and market conditions.
Jeanne Martin, Head of the Banking Programme at ShareAction, voiced alarm over the bank’s direction: “After dropping its Chief Sustainability Officer from its executive committee and announcing plans to review its climate targets and policies in February, HSBC has sent deeply concerning signals around whether managing the rapidly multiplying financial risks of global heating is still one of its priorities.”
She added that HSBC, as a global lender with substantial exposure across Europe and Asia, faces heightened vulnerability to climate-related risks including extreme weather, and warned that investors were now being “left in the dark” about the bank’s long-term climate intentions.
“Despite having shown climate leadership in the past by halting finance for new oil and gas projects, responsible investors now question just how committed the bank remains to playing its part in securing the long-term prosperity of our global economy,” Martin said. “If the bank fails to affirm its direction and engage with shareholders, it should not expect them to remain silent.”
At the AGM, HSBC’s outgoing chairman Mark Tucker reiterated the bank’s overall net zero goal by 2050 but acknowledged that near-term progress has been hindered by broader economic headwinds. However, ShareAction said it was disappointed that the bank did not address concerns over its weakened short-term targets, though it welcomed the bank’s willingness to engage further with the investor group.
