HSBC concedes to investor pressure over climate change
HSBC has given in to investor pressure by tabling plans to phase out its financing of coal power by 2040, staving off backlash over the bank not being aligned with its climate ‘ambitions’.
The bankin giant said today it will retire from funding both coal-fired power and thermal coal mining across the EU by 2030, and all other markets by 2040.
Pressure group ShareAction rallied investors at the beginning of the year to pursue a shareholder vote that targeted HSBC’s fossil fuel financing.
The investor group worth $2.4 trillion in assets, including asset manager Amundi and hedge fund Man Group, put pressure on the bank to cut loans and funding services offered to clients reliant on fossil fuels.
The pledge will go to a vote at the bank’s annual meeting in May and will be binding if it receives 75 per cent approval from shareholders.
In October, HSBC vowed to become net carbon neutral by 2030, in addition to making its financing commitments net zero by 2050.
Should the pledge be approved by shareholders, the bank will report on its progress annually, starting this year.
“Today’s announcement shows that robust shareholder engagement can deliver concrete results and sets an important precedent for the banking industry,” senior campaign manager at ShareAction, Jeanne Martin said.