HSBC delays climate target by 20 years
- HSBC announced a shift in its climate target timeline, changing its goal for net zero emissions by 2030 to 2050.
- The bank cited external factors beyond its control as reasons for the delay, including regulatory lag and market challenges.
- This decision reflects broader trends in the banking sector as institutions reassess their environmental commitments amid changing economic conditions.
In the UK, HSBC has recently adjusted its strategy for achieving net zero emissions, pushing back its target for reducing greenhouse gas emissions from its operations and supply chain from 2030 to 2050. This announcement was made during the publication of its annual results, highlighting the bank's commitment to reassess its climate goals amid challenges. The bank also indicated a slower pace in decarbonizing its supply chain compared to its operations, which has affected its overall emissions reduction plans. HSBC’s decision comes as it conducts a review of its 2030 targets specifically regarding financed emissions, which are the emissions generated by the clients and sectors that the bank funds. The bank had previously acknowledged that its current emissions footprint was substantial and had set interim targets for different polluting sectors. However, the need for a reassessment suggests a recognition of external factors limiting its ability to meet these targets, thus pushing the timeline forward. The management indicated that factors outside the bank’s control have significantly impacted its strategy. These include technological advancements, market dynamics, responses from the government regarding policy measures, and demand for sustainable solutions. The bank's chief executive described these challenges as a