Following through on its 2020 net zero ambitions, HSBC has released its inaugural Net Zero Transition Plan, outlining its roadmap for financing and supporting the global transition to a low-carbon economy. This plan builds upon the bank’s initial commitment to align its financing activities with the Paris Agreement goals and achieve net zero emissions in its own operations and supply chain by 2030.

Key aspects of the plan:

• Vision and Strategic Approach: HSBC emphasizes its role in using its financing and investment choices to drive meaningful decarbonization in the real economy.
• Sector Transitions: The plan details expected transitions in key sectors like oil & gas, power, and steel, and how the bank will engage with clients on their transition strategies. Sector-specific financed emissions targets and pathways are also outlined.
• Implementation Plan: This section focuses on how HSBC will embed net zero across its operations, support customers in their transitions, and partner for systemic change through collaboration with governments, regulators, and the finance industry.

“As one of the world’s largest international banks, HSBC is well placed to help support and finance the economic transformation required to reach net zero.”

said Noel Quinn, Group Chief Executive, HSBC

HSBC acknowledges the complexity of its journey:

• With a significant footprint in emissions-heavy sectors, the bank recognizes the challenges involved in transitioning its portfolio.
• However, it also sees this as an opportunity to partner with clients and customers to make a substantial impact on both emissions reduction and financing needs.

Focus areas for driving change:

• Transitioning Industry: Supporting existing industries to decarbonize their operations and processes.
• Catalysing the New Economy: Financing and facilitating the development of clean technologies and infrastructure.
• Decarbonising Trade and Global Supply Chains: Promoting sustainable practices throughout international trade networks.

Collaboration and engagement are key:

• Recognizing its limitations, HSBC emphasizes the importance of collaboration with stakeholders across the public and private sectors to achieve systemic change.
• The plan highlights the bank’s commitment to science-based targets, transparency, accountability, and inclusivity in its approach.

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“We are present in the regions, the markets and the sectors that arguably make the biggest impact in terms of future emissions. We have an opportunity to support them to make the transition and catalyse the new economy, following the science and leveraging our entrepreneurial spirit.”

Celine Herweijer, Group Chief Sustainability Officer, HSBC

Evolving roadmap:

• Acknowledging the uncertainties in the transition process, HSBC emphasizes the need for continuous adaptation and refinement of its plan.
• The initial plan serves as a starting point, and regular updates and reviews are planned to reflect evolving technologies, policies, and market dynamics.

HSBC’s Net Zero Transition Plan demonstrates a comprehensive and ambitious approach to navigating the path towards a net zero future. Its focus on real-world impact, sector-specific strategies, and collaborative partnerships positions the bank as a key player in shaping the financial landscape of the low-carbon economy.

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