Commercial, Energy Efficiency, Commercial, Finance, Sourcing Renewables - November 6, 2017
HSBC pledges $100B to combat climate change
Joining a growing number of the world's largest banks that have committed big money to mitigate climate change and cut their own climate-related risks, HSBC on Nov. 6 committed $100 billion to sustainable financing and investment by 2025.
The goal is one of five new commitments the London-based bank is making to tackle climate change and support sustainable growth in the communities it serves, HSBC said in a news release. The bank said it will intensify its support for clean energy and lower-carbon technologies, as well as projects that support the implementation of the United Nation's Sustainable Development Goals.
Within its own organization, HSBC said it will source 100% of its electricity from renewable sources by 2030, with an interim target of 90% by 2025. By signing long-term agreements with suppliers, HSBC aims to support the development of new renewable power facilities, the company said.
On the finance side, HSBC said it plans to reduce it exposure to thermal coal and actively manage the transition path for other high-carbon sectors; that goal includes ending financing for new coal-fired power plants in developed markets and of thermal coal mines worldwide. Additionally, HSBC said it will adopt recommendations of the Task Force on Climate-related Financial Disclosures led by former New York City Mayor Michael Bloomberg to improve transparency.
"For more than a decade, HSBC has helped clients break new ground in the green bond markets in Europe and Asia, and to finance some of the biggest climate-friendly infrastructure projects in the world," Group Chief Exeutive Stuart Gulliver said in a statement. "The $100 [billion] commitment that we are announcing today acknowledges the scale of the challenge in making a transition to a low-carbon future. We are committed to being a leading global partner to the public and private sectors as they make that transition."
The bank said it has continued to improve its own environmental performance in key areas. Over the past year, HSBC has reduced water usage by 9%, carbon emissions by 9% and energy consumption by 13%. It has also signed agreements with clean energy producers to source 24% of its electricity from renewable sources.
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