International banking and financial services
major HSBC announced on 6
November 2017 that it has pledged to provide $100 billion in sustainable financing and investment by
2025 and discontinue financing coal-based power generation capacity.
The London-based organization announced that the goal is one of the five new
commitments made by the company to tackle climate change and support
sustainable growth in the world. HSBC has also pledged to source 100 per cent
of its electricity from renewable sources by 2030, with an interim target of 90
per cent by 2025.
The company said it pledges to reduce its exposure to thermal coal and actively
manage the transition path for other high-carbon sectors, this includes
discontinuing financing of new coal-fired power plants in developed markets and
thermal coal mines worldwide.
“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. 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,” Group Chief Executive Stuart Gulliver said.
According an official statement, the company will adopt the recommendations of
the Task Force on Climate-related Financial Disclosure to improve transparency
and in the next two annual reports will proved more details on its approach to
climate-related risks and opportunities. HSBC announced that the new
commitments are an update on the action it is taking to meet its social,
environmental and governance (ESG) responsibilities.
Detailing its own performance on environmental parameters, the bank said it has
reduced water usage by 9 per cent, carbon emissions by 9 per cent and energy
consumption by 13 per cent. It has also signed agreements with clean energy
producers to source 24 per cent of its electricity from renewable sources.