LONDON (Reuters) -British lender HSBC said on Friday it had decided to leave the banking sector’s main climate coalition but remained “resolute” in targeting net-zero emissions across its business by mid-century.
The decision to leave the Net-Zero Banking Alliance sees it join global peers including JPMorgan, Citi, Morgan Stanley, Macquarie and Bank of Montreal who have all exited this year.
HSBC said while the alliance had helped create the frameworks to set emissions-reduction targets, the foundations were now in place as it prepares to update its net-zero transition plan later in the year.
“We believe supporting our customers’ transition brings benefits to their businesses, helps generate long-term financial results for our shareholders, and contributes to making the global economy more resilient,” it said in a statement on its website.
“Our approach to setting financed emissions targets will continue to be informed by the latest scientific evidence and credible industry-specific pathways.”
The move follows a decision by HSBC in February to drop a 2030 emissions-reduction target because of the slow pace of change in the real economy.
Chief Sustainability Officer Julian Wentzel also said at the time that HSBC would take a “more measured approach” to lending to the fossil fuel industry.
The exits since the start of the year also followed pressure from some U.S. Republican politicians who accused firms of colluding to unfairly penalise fossil fuel producers through their membership of groups such as the NZBA.
(Reporting by Simon Jessop; Editing by Paul Simao)
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