LONDON : HSBC is ditching its target of reaching net-zero carbon emissions across its business by 2030 because of slow change in the real economy, it said on Wednesday.
Europe’s biggest bank said it expects to record a 40 per cent drop in emissions across its operations, business travel and supply chain by 2030 and aims to hit the more ambitious net-zero target by the middle of the century. It also announced an internal review of targets on emissions linked to its loans.
The bank, in its annual report, said it had limited influence on companies over issues including technological advancements, market demand and effective policy influencing the pace of change.
HSBC also said its original target was based on an ability to use carbon credits to offset some of its supply chain emissions, which would not align with recent guidance from the Science Based Targets Initiative, which assesses and approves corporate climate targets.
The bank’s chief sustainability officer stepped down several months ago after Chief Executive Georges Elhedery removed the role from the bank’s executive committee in a management reshuffle.
Activists said they were concerned the decision signalled a pull back from HSBC’s climate ambition, compounding fears that the wider banking sector is rowing back on emission reduction pledges.
Morgan Stanley in October lowered expectations for emissions cuts from its corporate lending portfolio and a number of U.S. banks have left a climate coalition.
