Post by account_disabled on Feb 19, 2024 17:50:30 GMT -10
In a major victory for sustainable finance, two of the UK's leading banks have announced they will strengthen their climate commitments. On the one hand, HSBC abandons oil and gas financing, while, on the other hand, Barclays confirms a new objective of increasing investment in climate technology companies.
The actions of HSBC and Barclays represent a Chile Mobile Number List significant boost for the green finance movement – financial investments that are allocated to sustainable development projects and initiatives and in the fight against climate change – at a time when this sector faces rejection of some financial firms that have threatened to abandon the goal of zero emissions in protest at growing calls for them to abandon carbon-intensive investments.
The financial sector in climate action
According to various international bodies, the transition towards a low-carbon energy future is crucial to limit the increase in global temperature to 1.5 °C and avoid the worst climate disasters.
However, achieving that change requires significant environmental investments across all sectors of the economy, much of it directed at decarbonization and public and private financing for a net-zero economic transition. The latter refers to cutting Greenhouse Gas (GHG) emissions, responsible for climate change, until they are as close to zero emissions as possible.
The financial sector plays a key role in the transition to low carbon economies. Therefore, companies, banks, insurers and investors have to adjust their business models and implement plans to achieve this transition, aligning their investment and loan portfolios with net zero objectives.
Therefore, the announcement that HSBC abandons oil and gas financing, and Barclays joins in, represents a social commitment that accelerates the implementation of strategies to do without fossil fuels. In addition, it creates opportunities for climate innovation aimed at a sustainable economy.
HSBC turns its back on fossil fuels
Notably, Europe's largest bank, HSBC, announced that it would stop providing new loans or financing for new oil and gas projects and related infrastructure, while pledging to accelerate its activities in renewable energy and clean infrastructure.
In making this decision, the bank cited the International Energy Agency's 2050 net zero report. Which points out that, if there was a reasonable possibility of limiting the increase in global temperature, fossil extraction projects would not have to be developed anywhere in the world.
“If a transition plan is not produced or if, after repeated commitment, it is not consistent with our objectives and commitments, we will not provide new funding and may withdraw existing funding if appropriate.”
HSBC.
To achieve its goal, HSBC emphasized that it will make an "orderly transition", that is, it would continue to provide financing and investment in existing oil and gas fields at current levels until 2030, to maintain the "necessary production." But he added that he would then try to reduce those investments by half for the same period.
The bank also plans to continue providing financial and advisory services to energy sector clients, provided they have energy transition plans in place in line with HSBC's climate goals, including its 2030 target to reduce absolute emissions from the oil and gas sector. gas on its balance sheet by 34%, compared to 2020 levels, and its global goal of net zero by 2050.
HSBC updates financing policies
According to the financial giant, oil and gas continue downward curves on the way to limiting the planet's temperature. Therefore, this will be taken into account when evaluating your clients' transition plans.
Likewise, the customer engagement policy will focus on driving the adoption of “stringent” methane mitigation standards and investment in “carbon reduction technologies.” Such measures come on top of HSBC's previously announced ambitions to provide between £750bn and £1trn in "sustainable investment and finance" by 2030, as part of efforts to accelerate its "activities in renewable energy and clean infrastructure" in response to the "urgency of the current global energy crisis."
“[THE HSBC ANNOUNCEMENT] sends a strong message to fossil fuel giants and governments that banks' appetite to finance new oil and gas fields is declining.”
Jeanne Martin, Head of Banking at ShareAction.
However, Jeanne Martin, head of banking at ShareAction, also noted that HSBC's announcement only applies to asset financing and therefore does not cover the "much larger proportion" of financing it still provides to companies with plans. of oil and gas expansion. "We hope that HSBC will bring forward new proposals that address this as soon as possible," she said.
HSBC asked to go further in its climate action
Climate campaigners welcomed the move saying HSBC provided a new baseline for other major banks, but urged the bank to go further.
Greenpeace UK chief climate campaigner Charlie Kronick said HSBC's announcement was "long overdue" and an "embarrassment to the UK government", which this year granted licenses to expand oil and gas drilling in the North Sea, despite the risks of such projects to the 1.5°C target.
sustainable-financing-
HSBC's announcement came as rival bank Barclays also bolstered its climate finance strategy, revealing new plans to increase its investment in climate tech startups through its Sustainable Impact Capital portfolio to £500m by the end 2027, a significant increase on the £175 million to be invested by 2025.
The bank said its investment increase plans respond to the success of climate technology investments made to date, including £84 million in climate-focused startups over the past two and a half years, including in companies that They work on property retrofit solutions, hydrogen technologies and long-duration energy storage innovations.
Barclays supports climate finance
Barclays also took the opportunity to share that it has already surpassed its 2025 target of delivering £150bn in social and environmental finance and is now on track to deliver £100bn in green finance “well ahead” of its target date of 2030.
Daniel Hanna, global head of sustainable finance at Barclays corporate and investment bank, cited the final agreement from last month's COP27 Climate Summit, which stated that between $4 and $6 trillion of annual investment is needed in renewable energy and solutions. of decarbonization until 2030 to achieve net zero investment by 2050, as evidence of the bank's need to increase its own green investment commitments.
The actions of HSBC and Barclays represent a Chile Mobile Number List significant boost for the green finance movement – financial investments that are allocated to sustainable development projects and initiatives and in the fight against climate change – at a time when this sector faces rejection of some financial firms that have threatened to abandon the goal of zero emissions in protest at growing calls for them to abandon carbon-intensive investments.
The financial sector in climate action
According to various international bodies, the transition towards a low-carbon energy future is crucial to limit the increase in global temperature to 1.5 °C and avoid the worst climate disasters.
However, achieving that change requires significant environmental investments across all sectors of the economy, much of it directed at decarbonization and public and private financing for a net-zero economic transition. The latter refers to cutting Greenhouse Gas (GHG) emissions, responsible for climate change, until they are as close to zero emissions as possible.
The financial sector plays a key role in the transition to low carbon economies. Therefore, companies, banks, insurers and investors have to adjust their business models and implement plans to achieve this transition, aligning their investment and loan portfolios with net zero objectives.
Therefore, the announcement that HSBC abandons oil and gas financing, and Barclays joins in, represents a social commitment that accelerates the implementation of strategies to do without fossil fuels. In addition, it creates opportunities for climate innovation aimed at a sustainable economy.
HSBC turns its back on fossil fuels
Notably, Europe's largest bank, HSBC, announced that it would stop providing new loans or financing for new oil and gas projects and related infrastructure, while pledging to accelerate its activities in renewable energy and clean infrastructure.
In making this decision, the bank cited the International Energy Agency's 2050 net zero report. Which points out that, if there was a reasonable possibility of limiting the increase in global temperature, fossil extraction projects would not have to be developed anywhere in the world.
“If a transition plan is not produced or if, after repeated commitment, it is not consistent with our objectives and commitments, we will not provide new funding and may withdraw existing funding if appropriate.”
HSBC.
To achieve its goal, HSBC emphasized that it will make an "orderly transition", that is, it would continue to provide financing and investment in existing oil and gas fields at current levels until 2030, to maintain the "necessary production." But he added that he would then try to reduce those investments by half for the same period.
The bank also plans to continue providing financial and advisory services to energy sector clients, provided they have energy transition plans in place in line with HSBC's climate goals, including its 2030 target to reduce absolute emissions from the oil and gas sector. gas on its balance sheet by 34%, compared to 2020 levels, and its global goal of net zero by 2050.
HSBC updates financing policies
According to the financial giant, oil and gas continue downward curves on the way to limiting the planet's temperature. Therefore, this will be taken into account when evaluating your clients' transition plans.
Likewise, the customer engagement policy will focus on driving the adoption of “stringent” methane mitigation standards and investment in “carbon reduction technologies.” Such measures come on top of HSBC's previously announced ambitions to provide between £750bn and £1trn in "sustainable investment and finance" by 2030, as part of efforts to accelerate its "activities in renewable energy and clean infrastructure" in response to the "urgency of the current global energy crisis."
“[THE HSBC ANNOUNCEMENT] sends a strong message to fossil fuel giants and governments that banks' appetite to finance new oil and gas fields is declining.”
Jeanne Martin, Head of Banking at ShareAction.
However, Jeanne Martin, head of banking at ShareAction, also noted that HSBC's announcement only applies to asset financing and therefore does not cover the "much larger proportion" of financing it still provides to companies with plans. of oil and gas expansion. "We hope that HSBC will bring forward new proposals that address this as soon as possible," she said.
HSBC asked to go further in its climate action
Climate campaigners welcomed the move saying HSBC provided a new baseline for other major banks, but urged the bank to go further.
Greenpeace UK chief climate campaigner Charlie Kronick said HSBC's announcement was "long overdue" and an "embarrassment to the UK government", which this year granted licenses to expand oil and gas drilling in the North Sea, despite the risks of such projects to the 1.5°C target.
sustainable-financing-
HSBC's announcement came as rival bank Barclays also bolstered its climate finance strategy, revealing new plans to increase its investment in climate tech startups through its Sustainable Impact Capital portfolio to £500m by the end 2027, a significant increase on the £175 million to be invested by 2025.
The bank said its investment increase plans respond to the success of climate technology investments made to date, including £84 million in climate-focused startups over the past two and a half years, including in companies that They work on property retrofit solutions, hydrogen technologies and long-duration energy storage innovations.
Barclays supports climate finance
Barclays also took the opportunity to share that it has already surpassed its 2025 target of delivering £150bn in social and environmental finance and is now on track to deliver £100bn in green finance “well ahead” of its target date of 2030.
Daniel Hanna, global head of sustainable finance at Barclays corporate and investment bank, cited the final agreement from last month's COP27 Climate Summit, which stated that between $4 and $6 trillion of annual investment is needed in renewable energy and solutions. of decarbonization until 2030 to achieve net zero investment by 2050, as evidence of the bank's need to increase its own green investment commitments.