Can a financial institution demonstrate climate leadership?
HSBC is demonstrating climate leadership by joining the RE100 initiative, committing to 100% renewable power across all its global operations by 2030. This complements the bank’s long-term leadership role in sustainable finance.
The RE100, by The Climate Group in partnership with CDP is a global collaborative initiative of influential businesses committed to using 100% renewable electricity. The aim is to transform the global energy market and transition towards a net-zero economy, delivering a better, healthier and more sustainable world. With this commitment, HSBC aims to source 100% of its electricity from renewable sources by 2030, with interim targets of 90% by 2025 and 40% by 2020. By signing long-term agreements with suppliers, it will also support the development of new clean energy facilities.
Believing it is important to lead by example, HSBC influences its 4,100 global banking clients and 1.7 million business customers. It is actively managing the transition of high-carbon sectors, including discontinuing financing for new coal-fired plans in developed markets and financing of thermal coal mines worldwide.
It has announced a $100bn commitment to intensify its support for clean energy and low-carbon technologies, as well as projects that support the implementation of the Sustainable Development Goals. With this, it commits to being a leading global partner to the public and private sectors as they transition to a low carbon future.
Importantly, it has integrated sustainability into its selection criteria for projects, rejecting some projects that whilst making financial sense, do not meet the mark for sustainability. This signals to the market the importance of sustainability, creating greater demand for these types of projects.
Furthermore, HSBC has adopted the recommendations of the Task Force on Climate-related Financial Disclosures to improve transparency and contribute to the debate around sustainable finance and investment.
This story shows how HSBC supports Goal 13: Climate Action, specifically Target 13.4: “Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilising jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalise the Green Climate Fund through its capitalization as soon as possible.”
HSBC is one of the world’s largest banking and financial services organisations. It aims to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and ultimately helping people to fulfil their hopes and realise their ambitions.
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