HSBC Sets Financed Emissions Targets for Oil and Gas, Power and Utilities

HSBC, the London-based but Asian-centric banking group, announced targets for reducing financed emissions in two carbon-intensive sectors – oil and gas, and power and utilities – by 2030.

In a statement, the bank said its ambition to become a net zero bank by 2050 means aligning financed emissions – the greenhouse gas emissions of its clients – to net zero, and its interim targets are an important step towards that ambition. The bank said it plans to disclose targets for additional sectors in next year’s Annual Report.

The bank announced targets for:

  • A 34% reduction in the absolute on-balance sheet financed emissions for the oil and gas sector by 2030

  • A 75% reduction in the on-balance sheet financed emissions intensity for the power and utilities sector by 2030

The target-setting methodology is aligned with industry guidance on assessing portfolio alignment, including from the Net Zero Banking Alliance and the Financial Services Task Force.

HSBC is using a 2019 baseline and aligning with the 2050 net zero emissions pathway of the International Energy Agency (IEA), calculated to limit global warming to within 1.5°C.

HSBC Group Chief Executive Noel Quinn said: “Partnering and engaging with customers in the transition to net zero is at the heart of our approach.”

“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.”

#netzero #globalwarming #oilandgas

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