HSBC waters down 2030 climate targets for polluting sectors

HSBC has softened its 2030 targets for cutting planet-heating emissions driven by the financing of polluting firms.

The UK’s biggest lender released an update on its climate policies on Thursday after carrying out a review of its near-term targets over the last few months.

The review was launched in May at the same time that the bank announced it was pushing back its ultimate target to cut emissions across its supply chain to net zero by 20 years, from 2030 to 2050.

The bank cited a “slower pace of the transition across the real economy” and a “slower than envisioned” pace of decarbonisation globally.

HSBC’s updated policy now sets its targets for reducing its 2030 financed emissions for polluting sectors – such as oil and gas – as a range, rather than a single figure by 2030.

The lower end of each range is aligned with globally recognised scenarios that are consistent with limiting global warming to the key threshold of 1.5C.

Meanwhile, the upper bound would fit with a scenario of 1.7C warming.

For example, the bank said it aims to see reductions in financed emissions for oil and gas clients of between 14% and 30% by 2030, from the baseline year of 2019.

The document notes: “Our ability to meet these targets is dependent on a wide range of external factors, including the progress our customers make towards decarbonisation.”

HSBC said the policy reflects the reality of the transition’s uneven pace in the evolving geopolitical and macroeconomic landscape.

In the policy document, Georges Elhedery, HSBC group chief executive, said: “Against this wider landscape, we have refined our approach.

“Developed in the spirit of putting our customers at the heart of everything we do, our updated net zero transition plan reflects the realities of an evolving transition playing out very differently across the global economy – and the scale of opportunity it presents our customers.”

The bank said it is still on track to meet its target to provide or facilitate 750 billion – 1.0 trillion US dollars (£570-762 billion) in sustainable finance by 2030 and become a net-zero bank by 2050.

The changes come amid a wider trend of lenders softening their green commitments in the face of a global breakdown in political consensus over climate action.

Following in the wake of several major US lenders, HSBC became the first British bank to leave the banking sector’s global alliance for setting climate target earlier this year.

The Net Zero Banking Alliance recently ceased operations after the exodus of its members as Donald Trump returned to office in the US.

Campaigners criticised the move, with Louise Marfany, director of financial sector standards at ShareAction, calling the update “an egregious example of backtracking on climate that responsible investors will not tolerate”.

“This is profoundly irresponsible behaviour from one of the largest banks in the world at a time when extreme heat, droughts and floods exacerbated by climate change are destroying lives and wreaking havoc on economies around the world,” she said.

Hannah Bond, co-chief executive of ActionAid UK, said: “It’s high time corporations like HSBC were held accountable for their role in the climate crisis.

“By weakening its commitments ahead of Cop30, HSBC is sending a dangerous signal that it’s acceptable to walk away from promises to protect the planet.”