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HSBC joins US banks in quitting climate coalition
HSBC joins US banks in quitting climate coalition

Reuters

time4 days ago

  • Business
  • Reuters

HSBC joins US banks in quitting climate coalition

LONDON, July 11 (Reuters) - Britain's HSBC (HSBA.L), opens new tab became the latest bank to leave the industry's climate coalition on Friday, following in the footsteps of major U.S. lenders as some governments' net zero ambitions cool. HSBC said while it recognised the role played by the Net-Zero Banking Alliance (NZBA) in developing guiding frameworks to help banks set emissions-reduction targets, the foundation was now in place and it had decided to withdraw from the group as it prepares to update its net-zero transition plan. "We remain resolutely focused on supporting our customers to finance their transition objectives and on making progress towards our net zero by 2050 ambition," an HSBC spokesperson said. Global peers including JPMorgan, Citi, Morgan Stanley, Macquarie and Bank of Montreal have all exited the group this year. The group was formed in 2021 to help align the sector with the world's goal of limiting global warming, including by mobilising more money for environmentally friendly activities and setting targets for members to reduce emissions linked to their business activities. HSBC dropped a 2030 emissions-reduction target in February blaming slow progress towards net zero in the real economy. Jeanne Martin, Co-Director of Corporate Engagement said: 'We strongly condemn HSBC's decision to leave the NZBA, which is yet another troubling signal around the bank's commitment to addressing the climate crisis." The UK government has a legally binding commitment to reach net-zero emissions by 2050. HSBC's Chief Sustainability Officer Julian Wentzel said in February the bank would take a "more measured approach" to lending to the fossil fuel industry, sparking concerns among some activists that it would row back on its climate promises. On its website, HSBC says that targets for cutting emissions linked to its loan book would "continue to be informed by the latest scientific evidence and credible industry-specific pathways". In the U.S., banks have come under pressure from some Republican politicians and been called to testify before policymakers who have accused them of colluding to unfairly penalise fossil fuel producers through their membership of groups like NZBA. The Trump administration has consistently taken a critical position on the world's efforts to fight climate change, pulling out of the Paris Agreement on climate for the second time, cutting development aid, encouraging a ramping up of fossil fuel output and rolling back environmental regulations. Legal concerns prompted the NZBA to amend rules which members then voted on in April. NZBA received strong backing in that vote to continue to help facilitate the conditions needed for banks' clients to invest in the net-zero transition, a spokesperson said.

Climate crisis: HSBC exits Net Zero Banking Alliance
Climate crisis: HSBC exits Net Zero Banking Alliance

HKFP

time4 days ago

  • Business
  • HKFP

Climate crisis: HSBC exits Net Zero Banking Alliance

HSBC has withdrawn from the Net-Zero Banking Alliance (NZBA) following the departure of 17 other banks, according to a statement released last Friday. The UK banking giant was a founding member of the UN-convened alliance in 2021, which committed members to the transition to net zero and reaching goals laid out in the Paris Agreement. 'With this foundation in place, and as we work towards updating and implementing our Net Zero Transition Plan later in 2025, we, like many of our global peers, have decided to withdraw from the NZBA,' said HSBC in the statement. Net zero refers to a balance between the production and removal of greenhouse gas in the atmosphere. Reducing greenhouse gas emissions and attaining Net Zero is an internationally recognised goal in slowing down the progression of global warming. The 2015 agreement, adopted by 195 parties at the UN Climate Change Conference, underlined the need to achieve the target. String of departures HSBC added that they remained committed to achieving net zero by 2050: 'We continue to support customers in all sectors to make progress towards their individual decarbonisation plans, recognising that the transition to net zero is not linear or uniform across sectors, markets, and regions.' The move follows a string of departures from the alliance including six major US banks: Citigroup, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley, and JP Morgan Chase. Each exited following the election of US President Donald Trump. Trump signed an executive order in January to begin a process to withdraw the US from the Paris Agreement under the United Nations Framework Convention on Climate Change. When HKFP asked HSBC if there will be any external audit or monitoring of their new 2050 commitment, the bank did not respond. Nor did they reply when asked on Monday what environmental initiatives may be dropped as a result of the alliance withdrawal. However, a spokesperson for HSBC Hong Kong told HKFP that they 'remain resolutely focused on supporting our customers to finance their transition objectives and on making progress towards our net zero by 2050 ambition.'

HSBC exits banks' climate coalition abandoned by Wall Street
HSBC exits banks' climate coalition abandoned by Wall Street

AU Financial Review

time12-07-2025

  • Business
  • AU Financial Review

HSBC exits banks' climate coalition abandoned by Wall Street

HSBC has left the world's biggest climate alliance for banks, which was rocked earlier in the year by an exodus of many of its largest members. HSBC said the Net-Zero Banking Alliance played an important role in helping develop frameworks for setting emissions-reduction targets. 'With this foundation in place, and as we work towards updating and implementing our Net Zero Transition Plan later in 2025, we, like many of our global peers, have decided to withdraw from the NZBA,' it added.

HSBC becomes first UK bank to quit industry's net zero alliance
HSBC becomes first UK bank to quit industry's net zero alliance

The Guardian

time11-07-2025

  • Business
  • The Guardian

HSBC becomes first UK bank to quit industry's net zero alliance

HSBC has become the first UK bank to leave the global banking industry's net zero target-setting group, as campaigners warned it was a 'troubling' sign over the lender's commitment to tackling the climate crisis. The move risks triggering further departures from the Net Zero Banking Alliance (NZBA) by UK banks, in a fresh blow to international climate coordination efforts. HSBC's decision follows a wave of exits by big US banks in the run-up to Donald Trump's inauguration in January. His return to the White House has spurred a climate backlash as he pushes for higher production of oil and gas. HSBC was a founding member of the NZBA at its launch in 2021, with the bank's then chief executive, Noel Quinn, saying it was vital to 'establish a robust and transparent framework for monitoring progress' towards net zero carbon-emission targets. 'We want to set that standard for the banking industry. Industry-wide collaboration is essential in achieving that goal,' Quinn said. Convened by the UN environment programme's finance initiative but led by banks, the NZBA commits members to aligning their lending, investment and capital markets activities with net zero greenhouse-gas emissions by 2050 or earlier. Six of the largest banks in the US – JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs – left the NZBA after Trump was elected. UK lenders including Barclays, Lloyds, NatWest, Standard Chartered and Nationwide were still listed as members as of Friday afternoon. In February HSBC announced it was delaying key parts of its climate goals by 20 years and watering down environmental targets in a new long-term bonus plan for its chief executive, Georges Elhedery, who took over last year. The climate campaign group ShareAction condemned the move, saying it was 'yet another troubling signal around the bank's commitment to addressing the climate crisis'. Jeanne Martin, ShareAction's co-director of corporate engagement, said: 'It sends a counterproductive message to governments and companies, despite the multiplying financial risks of global heating and the heatwaves, floods and extreme weather it will bring. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'Investors will be watching closely how this backsliding move will translate into its disclosures and policies.' HSBC said in a statement: 'We recognise the role the Net Zero Banking Alliance has played in developing guiding frameworks to help banks establish their initial target-setting approach. 'With this foundation in place, we have decided to withdraw from the NZBA as we work towards updating and implementing our own net zero transition plan. 'We remain resolutely focused on supporting our customers to finance their transition objectives and on making progress towards our net zero by 2050 ambition.'

HSBC becomes first UK bank to quit industry's net zero alliance
HSBC becomes first UK bank to quit industry's net zero alliance

The Guardian

time11-07-2025

  • Business
  • The Guardian

HSBC becomes first UK bank to quit industry's net zero alliance

HSBC has become the first UK bank to leave the global banking industry's net zero target-setting group, as campaigners warned it was a 'troubling' sign over the lender's commitment to tackling the climate crisis. The move risks triggering further departures from the Net Zero Banking Alliance (NZBA) by UK banks, in a fresh blow to international climate coordination efforts. HSBC's decision follows a wave of exits by major US banks in the run-up to Donald Trump's inauguration in January. His return to the White House has spurred a climate backlash as he pushes for higher production of oil and gas. HSBC was a founding member of the NZBA at its launch in 2021, with the bank's then chief executive, Noel Quinn, saying it was vital to 'establish a robust and transparent framework for monitoring progress' towards net zero carbon-emission targets. 'We want to set that standard for the banking industry. Industry-wide collaboration is essential in achieving that goal,' Quinn said. Convened by the UN environment programme's finance initiative but led by banks, the NZBA commits members to aligning their lending, investment and capital markets activities with net zero greenhouse-gas emissions by 2050 or earlier. Six of the largest banks in the US – Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs – left the NZBA after Trump was elected. UK lenders including Barclays, Lloyds, NatWest, Standard Chartered and Nationwide were still listed as members as of Friday afternoon. HSBC's decision to leave the alliance comes just months after it announced it was delaying key parts of its climate goals by 20 years and watering down environmental targets in a new long-term bonus plan for its chief executive, Georges Elhedery, who took over last year. The climate campaign group ShareAction condemned the move, saying it was 'yet another troubling signal around the bank's commitment to addressing the climate crisis'. Jeanne Martin, ShareAction's co-director of corporate engagement, said: 'It sends a counterproductive message to governments and companies, despite the multiplying financial risks of global heating and the heatwaves, floods and extreme weather it will bring. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'Investors will be watching closely how this backsliding move will translate into its disclosures and policies.' HSBC said in a statement 'We recognise the role the Net Zero Banking Alliance has played in developing guiding frameworks to help banks establish their initial target-setting approach. 'With this foundation in place, we have decided to withdraw from the NZBA as we work towards updating and implementing our own net zero transition plan. 'We remain resolutely focused on supporting our customers to finance their transition objectives and on making progress towards our net zero by 2050 ambition.'

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