HSBC pushes net-zero target back 20 years
HSBC has put a 20-year delay on its climate target which aims to reduce emissions across the bank’s operations.
Announcing its annual results Wednesday morning, the FTSE 100 giant’s new boss Georges Elhedery confirmed a delay on its net zero policy.
The Big Four bank had announced plans in 2020 to achieve net zero across its operations and supply chains by 2030, but now aims to meet the goal by 2050.
The lender said it would also be reviewing its 2030 targets to reduce emissions relating to its financing of polluting firms, with the findings to be published later this year.
The delay means the bank now expects to achieve a 40 per cent reduction in emissions by 2030.
HSBC’s annual report stated progress in decarbonising efforts across the supply chain was “proving slower”.
HSBC joins global shift away from climate goals
This followed Barclays and Natwest dropping their climate goals from bonus schemes for senior executives, arguing it would better reflect the lender’s long-term climate goals.
Six of the biggest banks in the US have also altered their climate commitments after departing from the Net-Zero Banking Alliance (NZBA), which was convened in 2021 by the UN Environment Programme finance initiative.
The firms who excited NZBA included J.P Morgan, Citigroup and Bank of America.
All three banks join the global corporate shift in reviewing climate and diversity targets, with many stating they are unreasonable to achieve.
Elsewhere, HSBC’s annual results recorded a pre-tax profit of $32.3bn (£25.6bn) in 2024, up from $30.3bn (£24bn) in 2023.
On his first quarterly results as the firm’s new chief executive Elhedery said: “Since becoming CEO, I have focused on simplifying how we operate and injecting energy and intent into the way we deliver our strategy.”
He added: “Each targeted action we are taking is designed to unlock HSBC’s full potential.”