HSBC PLC to invest up to US$1 trillion to help customers decarbonise
The bank will phase out the financing of coal-fired power and thermal coal mining by 2040 and set net-zero targets for customers
PLC () said it will propose a special resolution on climate change at the Annual General Meeting on May 28.
The bank expects to provide between US$750bn and US$1 trillion in financing and investment to help its customers decarbonise as it eyes an opportunity for long-term, sustainable growth.
READ: HSBC to slash office space but committed to Canary Wharf
It will involve phasing out the financing of coal-fired power and thermal coal mining by 2030 in markets in the EU and OECD, and by 2040 in other markets.
’s current policies prohibit financing new coal-related projects, but thermal coal is still used as a power source in many countries across the world.
The FTSE 100 group plans to carry out analysis on customers by industry sector, beginning in 2021 with Oil & Gas and Power & Utilities, and extending to other sectors in 2022, such as Automotive, Building Materials and Construction.
It also intends to set short- and medium-term targets on a sector by sector basis that are consistent with net-zero outcomes by 2050, following science-based scenarios that follow 1.5°C warming pathways.
It will be the only resolution on climate change at this year’s AGM, after ShareAction and other shareholders who had originally proposed a separate resolution decided to withdraw it to focus on the bank’s.
Last October, vowed to go net-zero by 2030 and to align the bank’s financed emissions at a portfolio level to net-zero by 2050 or sooner.
The shares dipped 4% to 428.8p early on Thursday.
–Adds shares–
Read More: HSBC PLC to invest up to US$1 trillion to help customers decarbonise