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illuminem summarises for you the essential news of the day. Read the full piece on ESG Dive or enjoy below:
🗞️ Driving the news: HSBC has announced its departure from the United Nations-backed Net-Zero Banking Alliance (NZBA), following a growing trend among major financial institutions, including U.S. and Canadian banks, to exit climate-focused alliances
• The bank stated that while it is leaving the NZBA, it remains committed to its net-zero targets and will continue working with other climate-focused initiatives, including the Glasgow Financial Alliance for Net Zero
🔭 The context: The exodus from the NZBA has been a significant development in the financial sector
• Many major U.S. banks withdrew from the alliance in 2021, largely driven by political pressure in anticipation of the Trump administration
• This trend has since spread to other regions, with five major Canadian banks following suit. HSBC’s departure comes amidst a broader reshuffling of its sustainability leadership, including the delay of its net-zero target from 2030 to 2050
🌍 Why it matters for the planet: HSBC’s exit from the NZBA, coupled with its delayed net-zero target, raises questions about the bank’s long-term commitment to addressing the climate crisis
• The decision could undermine trust in climate alliances, which play a crucial role in setting and achieving global sustainability targets
• The move also highlights the tensions within the financial sector between financial and environmental considerations, potentially sending a negative message to both governments and companies striving to meet climate goals
⏭️ What's next: HSBC’s next steps will be closely watched by investors, who have already expressed concerns about the bank’s climate commitments
• The bank has emphasized its continued dedication to achieving net-zero emissions and supporting clients in their transition to greener practices, but scrutiny of its progress, policies, and disclosures is expected to intensify
• The development may also spur further conversations about the efficacy and transparency of climate-related financial alliances
💬 One quote: “It sends a counterproductive message to governments and companies, despite the multiplying financial risks of global heating and the heatwaves, floods, and extreme weather it will bring.” — Jeanne Martin, Co-Director of Corporate Engagement, ShareAction
📈 One stat: Investors representing £1.2 trillion ($1.6 trillion) pressed HSBC to reaffirm its net-zero commitment during the bank’s annual meeting in May 2025
See on illuminem's Data Hub™ the sustainability performance of HSBC, and its peers Barclays, BNP Paribas, and JPMorgan Chase
Click for more news covering the latest on net zero
