Commercial, Energy Efficiency, GHG Emissions - February 23, 2023
HSBC Reduces Financed Emissions from Oil, Gas Sectors
HSBC Holdings commits to interim targets for reductions in financed emissions to become a net zero bank by 2050 or sooner.
The bank’s transition plans include realigning its portfolio within two emissions-intensive sectors: Oil and Gas, and Power and Utilities.
HSBC is targeting a reduction of 34% in absolute on-balance sheet financed emissions by 2030 for the Oil and Gas sector. HSBC’s on-balance sheet financed emissions for Oil and Gas in 2019 were 35.8 million tonnes of carbon dioxide equivalent (‘Mt CO2e’).
For the Oil and Gas sector, HSBC focused on upstream companies, and integrated or diversified energy companies. Its assessment of this portfolio included Scope 1, 2 and 3 GHG emissions of financed counterparties.
For the Power and Utilities sector, HSBC is targeting on-balance sheet financed emissions intensity of 0.14 million tonnes of carbon dioxide equivalent per terawatt hour (‘Mt CO2e/TWh’) by 2030, which would constitute a 75% reduction from its 2019 baseline. This target covers upstream industries such as power generation, with Scopes 1 and 2 emissions included.
“Partnering and engaging with customers in the transition to net zero is at the heart of our approach,” said HSBC Group Chief Executive Noel Quinn in a statement. “We are supporting clients to evolve their business models and replace old technology with new, greener alternatives. We will request and review science-based client transition plans and use them as the basis for further engagement.”
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