Statement on the Net Zero Banking Alliance

In 2020, HSBC was one of the first global banks to set a net zero by 2050 ambition. We remain resolute in this long-term ambition and in supporting our customers to finance their transition objectives. We believe supporting our customers’ transition brings benefits to their businesses, helps generate long-term financial results for our shareholders, and contributes to making the global economy more resilient.

Financed emissions targets are one mechanism that we use to track and disclose our progress towards implementing our Net Zero Transition Plan. The Net Zero Banking Alliance played a role in developing guiding frameworks to help banks establish their initial target-setting approach. 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. We continue to remain engaged with the Glasgow Financial Alliance for Net Zero to support the mobilisation of capital towards the net zero transition. Our approach to setting financed emissions targets will continue to be informed by the latest scientific evidence and credible industry-specific pathways.

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. Our strategy is to provide our customers with pragmatic financing solutions that facilitate their progress and support long-term emissions reduction while advancing energy security and meeting the economic and industrial needs of today’s economy.