Ambition to be a net zero bank by 2050, including in our portfolio of financed emissions
Set on-balance sheet financed emissions targets to 2030 for key carbon intensive sectors
Aim to provide $750 billion – $1 trillion in sustainable finance and investment by 2030
Our approach to net zero
In 2020 we set an ambition to align our financing portfolio to net zero by 2050 and to achieve net zero in our operations and supply chain by 2030.
Our Net Zero Transition Plan brings together, for the first time, the steps we intend to take to deliver this. We also want to demonstrate how we intend to harness our strengths and capabilities in the areas where we believe we can best support large-scale emissions reductions.
- To seize the significant economic opportunity that exists in financing the investment needs of our clients and customers in the transition, while helping them to prosper.
- To help mitigate the rising financial and wider societal risks associated with failing to achieve the required transition across industries and geographies.
- To help shape (not just follow) the understanding, policies, market structures and standards necessary to achieve a just transition while maintaining sound economies.
Our role in the transition
Our starting point in the transition to net zero is one of a heavy financed emissions footprint. We will have a complex transition, with markets and sectors at different starting points and moving at different speeds. However, it also provides us with an opportunity to work with our clients and customers to help make an impact – in both the emissions challenge and the financing challenge.
We want to make financing choices that can lead to a meaningful impact on emissions reduction in the real economy, not just in our portfolio. Achieving this requires engagement with our clients and customers on their transitions to help finance decarbonisation in the sectors and regions with the most change ahead.
As we’ve supported much of the world’s industrial base for more than 155 years, we can play a prominent role in this transition.
We believe we can do this best by promoting change in three key areas that play to our strengths as an organisation and can help deliver a broader impact on decarbonisation in the real economy: transitioning industry, catalysing the new economy, and decarbonising trade and global supply chains.
Critical to our approach is a recognition that as a bank we cannot do this alone. Our ability to transition relies on decarbonisation in the real economy – both the supply and demand side – happening at the necessary pace.
Our clients and customers, and the industries and markets we serve will need to transition effectively, supported by strong government policies and regulation, and substantially scaled investment. Engagement and collaboration are therefore key to how we respond.
Science-based, transparent and accountable
Just and inclusive
Supporting our customers
Embedding net zero into the way we operate
Partnering for systemic change
Embedding net zero across our business covers areas including the products and services we provide, managing risk, using policies to drive change, our governance and incentives, our culture and capabilities and how we measure progress.
Our initial transition plan provides an overview of the progress we have made to date and what we plan to do next. We know there is still much more to do. We’re focusing our efforts on where we can help drive material and implementable change, and applying learnings as we work to embed net zero across HSBC.
The most significant challenge in developing a transition plan at this early stage is the relative novelty of the process and the uncertainty in many areas we are seeking to address. The only certainty is that these and other developing areas will unfold in ways that we cannot accurately forecast today.
As a result, the ambition and details around implementation in this transition plan will need to evolve over time.
Rather than wait for these areas to become clear we have chosen to lay out and pursue the plans we have today, based on currently available data, infrastructure, resources, technologies and standards.
Our transition plan will form the basis of further work on our journey to net zero over time, and we expect to review and update it periodically.