As part of a broader change to its energy strategy, the British bank HSBC announced on Wednesday that it will no longer provide new loans or capital markets finance for new oil and gas projects.
Given the current global energy crisis and the strains that the war in Ukraine is putting on supply, the bank stated that it will continue to finance natural gas projects for the time being.
According to HSBC, it aims to reduce its financed emissions to net zero by 2050 or earlier in accordance with the Paris Agreement’s climate change goals. This means that it will assist clients in reducing their reliance on fossil fuels and cut back on funding for the industry.
As part of its broader climate obligations, HSBC has previously laid out intentions to reduce its exposure to thermal coal financing and to stop backing that industry through investment funds it actively manages.
In recent years, the bank has faced consistent criticism for how quickly it has embraced sustainability, including demonstrations at its annual shareholder meeting and extensive media campaigns emphasising its sponsorship of fossil fuels.
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