HSBC, one of the largest financial organizations, has reportedly promised to invest $100 billion into low-carbon technology and sustainable development.
HSBC, one of the largest financial organizations, has reportedly promised to invest $100 billion into low-carbon technology and sustainable development by 2025.
According to a report published at Financial Times, this decision is part of the measures HSBC is taking to help fighting climate change.
The UK-based bank has also stated that it will reduce support for coal-fired power generation, while disclosing “climate risks” in its lending book in their new policies section. The money the bank is giving now will be used for projects that contribute to reducing carbon emissions.
Another big bank JPMorgan Chase recently sponsored clean energy projects with a $200 billion investment as part of a bigger tendency of global banks investing in “green” initiatives.
In its announcement this week, HSBC has also made a commitment to use electricity coming solely from renewable sources by 2030. Currently, this is accounting to only 24 per cent. The bank explained it would achieve this via direct investment in green power projects or by the help of power purchase agreements.
Also, the bank reportedly promised to stop financing new coal mines or new customers dependent on coal mining, as well as new coal-fired power stations in developed countries. However, HSBC left a possibility of sponsoring coal-fired plants in developing countries.
As Daniel Klier, HSBC`s head of startegy, told Financial Times, coal is still an important part of power generation in developing countries. For this reason, the bank will not stop financing such businesses.
By contrast, competitors like ING and Deutsche Bank have declared a wordwide ban on coal-fired plants financing.