HSBC says it will continue to fund energy companies at the corporate level to help them overhaul their businesses
HSBC will stop funding new oil and gas fields and expect more information from energy customers about their plans to cut carbon emissions, the banking giant said, as part of an update. more broadly about its industry policy.
Activist groups that have criticized HSBC in recent years mostly hailed the move, announced on Wednesday by one of the world’s biggest lenders to energy companies as an update. The deeply awaited update will propel companies towards a cleaner future.
Jeanne Martin, a campaigner at Share Action, a London-based registered charity dedicated to promoting responsible investment, said: “The HSBC announcement sets a new ambitious minimum. for all banks committed to zero.
HSBC is one of the largest banks to confirm that it will not support oil and gas projects that have received final approval after the end of 2021, a move the International Energy Agency says is necessary for the world to achieve this goal. net zero emissions by 2050.
Others who have committed to this include Britain’s largest domestic bank, Lloyds.
HSBC says it will continue to fund energy companies at the group level to help them transform their businesses and drive the development of cleaner energy sources, and will evaluate their plans. their strategic plan every year.
Celine Herweijer, Head of Sustainability at HSBC, told Reuters news agency that the policy covers everything from biomass projects to hydrogen, nuclear and thermal power, and is intended to spur progress between countries. regions with different energy systems.
In light of Russia’s invasion of Ukraine and its resulting high energy costs, she said, the policy is also “pragmatic” and the bank will continue to finance existing oil and gas fields to ensure a dwindling supply. according to demand.
“It is not that there are no new fossil fuel investments tomorrow. Herweijer said the current fossil fuel energy system needs to coexist with the evolving clean energy system.
“The world cannot move towards an energy-free future without energy companies playing a central role in the transition.”
To make sure oil companies are on track, the bank will now ask for new information, including production levels after 2030, she added.
Also on Wednesday, Barclays said it had increased its transition and sustainability financing target to $1 trillion by 2030 and would pump more of its money into energy startups.
