HSBC Sparks Fears of Net-Zero Climate Goal Rollback

HSBC’s decision to exit the Net-Zero Banking Alliance (NZBA) has disappointed shareholders and sustainability experts, who urged other banks to remain committed despite recent high-profile departures. Laura Hillis from the Church of England’s Pensions Board called the move “hugely disappointing” and warned it sends a negative message to clients, shareholders, and governments. Richard Howitt, former EU parliament member, described HSBC’s exit as “deeply regrettable,” urging banks to “not weaken or depart from their climate goals.”

The NZBA, formed in 2021 under the Glasgow Financial Alliance for Net Zero, has seen multiple exits recently amid shifting US political discourse. HSBC cited a desire to “move on” but insisted it remains committed to its 2050 net zero target.

An NZBA member said HSBC’s relationship with the alliance had been “rocky,” noting it was voted off a European steering group for wanting to “water down” guidelines. Under new CEO Georges Elhedery, HSBC’s sustainability focus has shifted, with critics saying “sustainability has taken a back seat.”

However, former employees cautioned against interpreting HSBC’s decision as a “wholesale rejection of ESG,” noting internal tensions between commercial and sustainability priorities. Howitt concluded, “I would have hoped HSBC would have had the courage of its commitments… climate goals are too important for us to fail.” – Source: The Banker