HSBC publicly declared that the expansion of coal-fired power is incompatible with sustainability goals and vowed to phase out support for the industry, following pressure from activist investors.
Pressure from activist investors has led HSBC to commit to phasing support for the coal industry by 2030 in the developed world and by 2040 in the developing world, according to the bank.
HSBC will also look to achieve short and medium-term targets to align its financing with the Paris agreement on climate change and report its progress annually, starting this year.
The bank’s new commitments have gone even farther than its previously declared ambition of achieving net-zero carbon emissions by 2050.
ShareAction
HSBC was pressured into the new commitments by a coalition that included campaign group ShareAction and a group of 15 major investors, including Amundi and Man Group, that manage a total of $2.4 trillion in assets.
As a result of the bank’s response, ShareAction and the 15-strong group will withdraw their motion to bind the bank to make stronger commitments and the bank will instead make its own resolution with the backing of the coalition.
«Today’s announcement shows that robust shareholder engagement can deliver concrete results and sets an important precedent for the banking industry,» said ShareAction senior campaign manager Jeanne Martin in a statement.
