HSBC, which had initially set its goal to be net-zero by 2030, has pushed it further twenty years to 2050.
The bank attributed carbon offsets, a slow global pace of change, especially in the scope 3 supply chain, and policy and regulations as the three main reasons for the delay.
The reasons:
Carbon offsets: HSBC plans a 40% reduction in operations, travel, and supply chain by 2030. Its original target for carbon credits to offset supply chain emissions did not align with recent guidance from the Science-Based Targets Initiative, assessing corporate climate targets.
Slow global pace of change: The report indicates that the pace of global change in reducing emissions in the scope 3 supply chain component is slower than anticipated. HSBC’s anticipated pace of diversification of the energy mix, technological advancements, and market demand for climate solutions is not being met.
Policy and regulations: The bank admitted that the ability to meet its 2030 interim financed emissions targets and achieve net-zero ambition is influenced by fundamental prerequisites beyond its control.
What’s feasible?
In its 2024 Strategic Report, published on 19 February 2025, HSBC said, “To the extent our customers are facing challenges, especially in light of the slower pace of the transition, there is no real benefit to society in simply sending those customers to another organization that may be less committed to supporting their transition.”
Despite this, the bank has made progress in sustainable finance, providing and facilitating $393.6 billion since 2020, an increase of $99.2 billion from 2023.
HSBC is also set to decrease its scope 1 and 2 emissions by over 90% by 2030 from its 2019 baseline through a series of energy efficiency measures and significant investments in renewable energies.
This is part of HSBC’s aim to provide and facilitate between $750 billion and $1 trillion of sustainable finance and investment by 2030. It is also reassessing its interim financed emission targets and related policies anticipated for 2030.
According to the bank, achieving a 40% reduction in carbon emissions from its operations, travels, and broader supply chain by 2030 is feasible.
HSBC is not an exception to pushing its net-zero goal:
HSBC is not the only financial institution to alter its sustainability objectives. BlackRock also reformed its sustainability goals and withdrew from the Net Zero Asset Managers initiative due to confusion and legal inquiries.
Other major financial institutions with net zero goals for 2050 include Barclays, Citigroup, Goldman Sachs, JPMorgan Chase, Lloyds Banking Group, and NatWest.
