HSBC Holdings PLC is considering net zero emissions plans for the companies that it invests in, though it has been criticized for not being strict enough.
According to The Wall Street Journal, HSBC Holdings PLC intends to reduce emissions from its lending targets. A representative from ShareAction, a nonprofit group that has worked on an investor effort pushing HSBC for tougher climate targets, criticized the measures taken as not enough.
The plans excluded fossil-fuel financing from capital-markets activities, drawing Jeanne Martin to state that the exclusion “should raise questions about the credibility of its strategy." HSBC responded that in developing its standards, it referenced industry standards and does not encompass emissions from capital-markets activities.
HSBC said their new approach of considering client transition plans will apply for financing for any type of transaction, according to The Wall Street Journal.
On the topic of working with companies to create climate plans that would aid HSBC in reaching net-zero emissions by 2050, HSBC Chief Sustainability Officer Celine Herweijer said, “We want to support those who take an active role in the energy transition; this is where we can have the greatest impact in making net zero a reality."
The plan outlined by HSBC would see a reduction in emissions from oil and gas companies that were lent money from the bank.
HSBC reported the emissions from the companies they invested in for the first time on Tuesday, Feb. 22.
HSBC is currently one of the world's largest lenders to the fossil fuel industry.