HSBC will no longer fund new oil and gas fields following accusations of greenwashing by the banking giant.
The UK's biggest lender said it will not support oil and gas projects that received final approval after the end of 2021. This includes lending and capital markets finance "for the specific purpose of projects pertaining to new oil and gas fields and related infrastructure when the primary use is in conjunction with new fields".
At the same time, HSBC said it also plans to step up financing for clean energy projects.
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“Given the parallel urgency of today’s global energy crisis, we plan to accelerate our activities in renewable energy and clean infrastructure, aligned with our previously announced ambition to provide $750 billion to $1 trillion in sustainable finance and investment by 2030,” the group said.
Its sustainable investment commitment was made in 2020 when HSBC also pledged to become "net zero", meaning its activities would not add to greenhouse gases already in the atmosphere. However, according to a report earlier this year by ShareAction, the bank invested an estimated $8.7 billion (£7bn) into new oil and gas in 2021.
In October, HSBC was also rapped by the Advertising Standards Authority which said the bank made unqualified claims about its environmental credentials in two high street adverts that appeared last year in the run-up to COP26.
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“This is a big step and one that we hope other financial institutions will follow," Scottish Greens economy spokesperson Maggie Chapman said. "It should have happened years ago, but it is still welcome, and, just as importantly, it sets a vitally important precedent.
“This decision would not have happened without years of pressure from climate campaigners and activists. This won’t end HSBC’s total involvement in the sector, but it will reduce it and will send a message to the rest of the industry."
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