HSBC chairman: Transition financing needed to achieve 2050 ‘net zero’ climate goals, divestment not the answer
- British charity ShareAction has targeted the bank over its financing for the fossil fuel industry
- Overnight divestment not the best option for the environment or affected communities, says Mark Tucker
HSBC chairman Mark Tucker on Monday defended the need to provide transition financing to clients to spark environmental change and reach the lender’s goal of being “net zero” in terms of carbon emissions by 2050.
Speaking at the Asian Financial Forum, Tucker said climate change is probably “the most urgent and serious threat” faced by the global community and the lender has an obligation to tackle that, but it will not be achieved by stepping away from clients, particularly in emerging markets.
“Divestment is not the best option for the environment or for the people and the communities that rely on these traditional industries,” Tucker said. “Ninety-five per cent of energy needs are still met by fossil fuels. The renewable market is still in its infancy.
“There’s not a current proven way to help energy supply meet the demand if there’s mass divestment. Fossil fuel dependency is more widespread than energy. They’re also used in the production of steel, cement, packaging, etc”
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