HSBC aims to cut down oil & gas emission by 34% till 2030

HSBC bank’s sustainability Chief has announced that the bank is targeting to cut down on emissions associated with loans made to its oil and gas customers by 34% this decade. This marks the first time that Britain’s major lender has committed to such a great mission.

More than 100 banks have aimed to reach net zero carbon emission by 2050 and are being pressed to provide further details on the deep short-term cuts to ‘financed emissions’ if banks really want to meet their targets.

Celine Herweijer, Group Chief Sustainability Officer, HSBC, commented that the new way is rewiring the method in which the bank takes investment and financing decisions.

For the unversed, HSBC is a prominent lender to corporate clients throughout Asia and some of the world’s largest oil and gas conglomerates. The bank’s plan will determine the tone for the other banks in the region as well, most of which are yet to unveil their targets.

HSBC quoted that its oil and gas target aims for absolute reductions instead of carbon intensity, which records emissions per unit of energy or barrel of oil and gas produced, and hence, can witness actual emission rise.

The climate activists quote that intensity-centric missions will not reach far enough if the world’s global warming keeps rising beyond 1.5 degrees Celsius from the pre-industry levels, which as per scientists is crucial to avoid catastrophic climate change.

Herweijer stated that it is nearly impossible to aim for net-zero economy by 2050 if the world records intensity-based metrics in the energy segment.

Market Forces, an environmental campaign group, mentioned that the targets of HSBC have loopholes which undermine the bank’s credibility, including implementation of the target only to on-balance sheet emissions.

Moreover, the policy also permitted the bank to continue to finance new and developing oil and gas projects.

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