International financial institution, HSBC, has pledged $100 billion for sustainable financing and investment by 2025, as part of its set of commitments to support the transition to a low-carbon economy and promote sustainable growth.
The London-based banking firm said in a statement that 100% of its power will be sourced from renewables by 2030, with an interim target of 90% by 2025.
This vision will be achieved through signing long-term agreements with suppliers, that the Bank aims to use for the development of on-site new renewable power facilities.
Currently, it procures 24% of its electricity needs from renewables and is a member of RE100, a group of global businesses committed to 100% renewable power led by Climate Group in partnership with CDP, as part of the We Mean Business coalition, Climate Action Programme reported.
Group Chief Executive Stuart Gulliver said: “For more than a decade, HSBC has helped clients break new ground in the green bond markets in Europe and Asia, and to finance some of the biggest climate-friendly infrastructure projects in the world. The $100bn commitment that we are announcing today acknowledges the scale of the challenge in making a transition to a low-carbon future. We are committed to being a leading global partner to the public and private sectors as they make that transition.”
Drive for a low-carbon economy
In a statement, the Bank has pledged to reduce its exposure to thermal coal and actively manage the transition path for other high-carbon sectors.
This includes discontinuing financing of new coal-fired power plants in developed markets and of thermal coal mines worldwide.
The Bank added that it will adopt the recommendations of the Task Force on Climate-related Financial Disclosures to improve transparency. In its next two Group annual reports, HSBC will give more details on its approach to climate-related risks and opportunities.
Stuart Gulliver, Group Chief Executive of HSBC said: “The $100 billion commitment that we are announcing today acknowledges the scale of the challenge in making a transition to a low-carbon future. We are committed to being a leading global partner to the public and private sectors as they make that transition”.
The financial services firm explained in a statement: “The pledges build on HSBC’s long-standing involvement in green and sustainable finance. Over recent years, it has: played a leading role in developing voluntary standards for issuers of green bonds and social bonds; issued its own €500 million green bond; and won recognition for the quality of its research into climate change.
“HSBC announced the new commitments in an update on the action it is taking to meet its social, environmental and governance (ESG) responsibilities.”
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