HSBC to cut coal financing by half by 2030 as it eyes 2050 net zero carbon emission goal
- HSBC plans to slash lending to coal projects by at least 25 per cent by 2025 and will increase it to 50 per cent by 2030 from last year’s level
- The UK-based lender said in March it would phase out financing for coal related projects in the EU and OECD by 2030, and the rest of the world by 2040
The London-based bank on Tuesday said it plans to reduce its exposure to coal mining and coal-fired power plants by at least a quarter by 2025 and halve it by 2030 from last year’s level.
The latest announcement represents interim targets to phase out coal financing in the European Union and 38 Organisation for Economic Cooperation and Development (OECD) nations by 2030, and the rest of the world a decade later.
These goals were announced in March following pressure from investors, and were approved by shareholders in May.
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“In recognition of the rapid decline in coal emissions required for any viable pathway to 1.5 degrees Celsius, the policy will mean HSBC phasing out finance to clients whose transition plans are not compatible with HSBC’s net zero by 2050 target,” Europe’s biggest bank by assets said in a statement.
