HSBC Holdings PLC plans to eliminate coal funding in the European Union and the Organization for Economic Co-operation and Development by 2030, as part of the lender’s efforts to decroft its portfolio.
The London and Hong Kong-registered bank has called for a vote on a specific climate change resolution at its next annual general meeting on May 28 to outline a strategy for shifting to zero-carbon emissions, entered $ 750 billion to $ 1 trillion in financing and investment to support consumer disarmament and sustainable growth.
The figure of 75% of the votes must pass. If adopted, it is likely that the policy would be published before the end of the year.
“We are delighted to outline the next phase of our zero-zero strategy in this mission,” HSBC Group Chief Executive Noel Quinn said on Thursday. “This represents an unprecedented level of collaboration between bank, shareholders, and NGOs on an urgent matter, with a positive outcome for all. “
The move comes after months of talks with a $ 2.4 trillion consortium of investors that includes Amundi – Europe’s largest asset manager – hedge fund company Man Group and museum ShareAction Norway, as well as 117 individual shareholders.
The coalition set up talks in January when it submitted a resolution asking HSBC if it would disclose its cut to fossil fuels. The talks came to an end when the coalition agreed to withdraw its proposal over the board’s resolution, although it said it could still take action next year if HSBC does not fulfilling his promises.
HSBC in October set the goal of zero carbon at portfolio level by 2050 but drew criticism from ShareAction and others who said they would continue to pump money into coal.
In a statement, the investor consortium praised the HSBC board ‘s recommendation, saying it could set the model for other banks to follow.
“HSBC’s commitment to extracting coal is a wake-up call for Asian banking and coal sectors and will contribute to the much-needed move away from coal dependence in the region,” AkademikerPension CEO Jens Munch Holst said in the recitation.
Write to Fabiana Negrin Ochoa at [email protected]