Commercial, GHG Emissions, Finance - January 25, 2024
HSBC Stops Financing Oil & Gas Projects
HSBC, an investment bank, announced it will no longer provide new lending or capital markets finance for the specific purpose of projects pertaining to new oil and gas fields and related infrastructure projects when the primary use is in conjunction with new fields.
According to an announcement, the bank will provide finance or advisory services to energy sector clients at the corporate level if their transition plans are compatible with HSBC’s 2030 portfolio-level targets and net zero by 2050 ambition.
HSBC’s most recent review of its energy policy was completed in January 2024.
The bank’s energy policy is informed by consultation with scientific and international bodies and reviews its policy annually to consider the latest outlooks on updated pathways to net zero by 2050.
HSBC previously announced 2030 targets for the oil, gas, power, and utilities sectors and also works with clients who are taking an active role in the transition. The bank helps those clients finance and invest in the technologies and infrastructure needed to succeed in the transition.
It previously announced a goal to provide $750 billion to $1 trillion in sustainable finance and investment by 2030.
HSBC will continue to provide financing to maintain supplies of oil and gas in line with current and future net zero-aligned declining global oil and gas demand while increasing its activities to support clean energy deployment.
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