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HSBC’s green credentials come under fresh scrutiny

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Wall Street Journal or enjoy below:

🗞️ Driving the news: An activist investor group led by ShareAction, with $892 billion in assets, plans to question HSBC at its upcoming annual general meeting about the specifics of how it intends to utilize its green finance funds, which are broadly set to target $750 billion to $1 trillion in sustainable finance by 2030

🔭 The context: ShareAction, a nonprofit that focuses on responsible investing, criticizes HSBC's sustainability targets as too vague and lacking clear impact metrics
• The coalition includes major financial entities like Royal London Asset Management and Axiom Alternative Investments

🌍 Why it matters for the planet: HSBC's commitment towards green financing is significant for environmental sustainability, as such funds are vital for transitioning to a carbon-free future
• However, the effectiveness of these investments in real climate change mitigation remains under scrutiny

⏭️ What's next: HSBC will address these concerns at its AGM, as part of ongoing dialogue with stakeholders about its climate strategy
• This reflects a broader trend where financial institutions are pressured to demonstrate real progress on environmental commitments.

💬 One quote: "It gives the impression the bank is scaling up its efforts on green finance without demonstrating the difference it will make, or whether it is financing the green activities that are most needed," Jeanne Martin, head of the banking program at ShareAction

📈 One stat: HSBC has issued more than $2 billion in green bonds since 2015, supporting renewable energy, clean transport, and other sustainable projects.

Click for more news covering the latest on sustainable finance


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