HSBC Ditches 2030 Net-Zero Goal Amidst Slow Economic Transition
HSBC has abandoned its ambitious target of achieving net-zero emissions throughout its operations by 2030, citing the sluggish pace of change in the real economy.
The largest European bank anticipates a 40% reduction in emissions across its operations, business travel, and supply chain by 2030. It now aims to attain the more ambitious net-zero target by mid-century.
HSBC's annual report highlights its limited ability to influence factors driving emissions reduction, such as technological advancements, market demand, and effective policy.
The bank's initial target relied on carbon credits to offset a portion of its supply chain emissions. However, this approach conflicts with recent guidelines from the Science Based Targets Initiative.
HSBC's Chief Sustainability Officer recently departed, leaving concerns about a potential retreat from the bank's climate ambitions.
Activists express fears that the banking sector is backtracking on emission reduction commitments, citing similar actions by Morgan Stanley and the withdrawal of several U.S. banks from a climate coalition.