Page 15 - EurOil Week 02 2021

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HSBC faces calls to dump

fossil fuels

EUROPE HSBC has become the latest major bank to face credibility of HSBC’s climate commitments,
pressure from shareholders to stop funding fossil given that phasing out of financial of fossil fuels
It follows a similar fuels and commit to binding climate targets. is an absolute must for any net-zero strategy,” the
resolution that was Some 15 investors with a combined $2.4 tril- NGO said.
voted down at Barclays lion in assets under management have filed a res- Those supporting the resolution include
last year. olution to be voted on at HSBC’s annual general Europe’s largest asset manager Amundi, the
meeting (AGM), scheduled for April 2021. The world’s largest publicly traded hedge fund Man
resolution “calls on HSBC to publish a strategy Group, and asset managers and owners from the
and targets to reduce its exposure to fossil fuel UK, Denmark, France and Sweden. The resolu-
assets, starting with coal, on a timeline consistent tion will need the support of 75% of shareholders
with the Paris climate goals,” shareholder activist to pass.
group ShareAction, which is co-ordinating the “The message from the resolution is clear:
effort, said in a statement. net-zero ambitions by top fossil fuel financiers
This marks the second climate vote filed at a are simply not credible if they fail to be backed
major UK bank, following a similar resolution up by fossil fuel phase-out plans,” ShareAction’s
put forward at Barclays’ AGM last year. HSBC senior campaign manager Jeanne Martin said.
is the second-biggest financier of fossil fuels in “Five years after the Paris agreement was signed,
Europe after Barclays, according to ShareAction. HSBC continues to pour billions into the coal
It has provided some $87bn to projects between sector, a behaviour that is at odds with limiting
2016 and 2019, with its investments in fossil fuels global warming to 1.5oC. If HSBC is serious
having climbed each year in the last five. about its net-zero ambition, it will support this
The bank declared its “ambition” to become resolution.”
net zero by 2050 in October last year, but critics The resolution at Barclays was supported by
say the pledge lacks commitment. Indeed, Sha- only 24% of shareholders in May last year. How-
reAction noted that the bank had ploughed an ever, the move did prompt the bank to map out
extra $1.8bn into fossil fuel companies in the four a new policy to ensure its lending conforms with
months leading up to its declaration. the 2015 Paris Accord, which was backed by
“These findings raise serious doubt over the almost all shareholders. ™

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