The Advertising Standards Authority has banned a series of HSBC advertisements, saying they made “misleading” environmental claims.
This is the first time the regulator has ruled against a bank for misrepresenting its green credentials, reflecting public concern over “greenwashing”, and concerns about the roles banks plan in funding fossil fuels production that is driving the climate crisis.
Similar adverts by Barclays and Standard Chartered have also been reported to the regulator.
The ASA said it received 45 complaints about these ads, which show statements about planting trees and transitioning to net zero.
In its ruling, the regulator deemed that consumers seeing this advertising campaign, would not expect HSBC to be simultaneously involved in financing fossil fuel businesses whose activities are contributing to global greenhouse gas emissions and climate breakdown.
The ASA’s ruling said: “We concluded that the ads omitted material information and were therefore misleading.”
The regulator added that “future marketing communications featuring environmental claims [should be] adequately qualified and not omit material information about its contribution to carbon dioxide and greenhouse gas emissions.”
This decision has been welcomed by Make My Money Matter, the group campaigning for pension funds to stop funding fossil fuels.
Make My Money Matter CEO Tony Burdon said “While HSBC continues to position itself at the forefront of the fight against climate change, in reality, it’s the UK’s worst financier of fossil fuel expansion – activity that is unpopular with the public, bad for the planet, and directly contradicts the International Energy Agency’s guidance on how we limit global warming to less than 1.5 degrees.
“Make My Money Matter supports the decision of the Advertising Standards Authority, and hopes today’s ruling begins to turn the tide against banks who may hide their dangerous relationship with the fossil fuel industry through a campaign of misleading and contradictory corporate advertising.
“By shining a light on this critical issue, we hope this ensures leading high street banks like HSBC, Barclays, Santander, Natwest and Lloyds, back their adverts with action and permanently commit to ending financing for new fossil fuel expansion’”
Campaigners have also called on comedian Richard Ayoade to stop promoting HSBC’s climate initiatives.
Robbie Gillett from campaign group Adfree Cities, who led the complaint, said: “This is a significant moment in the fight to prevent banks from greenwashing their image. HSBC can no longer ply us with ads pretending they are green while continuing to bankroll climate breakdown in the background. HSBC and other banks such as Barclays and Standard Chartered must stop funding fossil fuels instead of attempting to buy public favour with deceptive marketing campaigns, before these reputational risks turn into legal ones.”
Adfree Cities said polling undertaken in January last year found that only 19 per cent of HSBC customers were aware that the bank funds fossil fuels.
Despite publicly committing to reduce carbon emissions as a member of the Net Zero Banking Alliance HSBC has not started restricting finance for oil and gas companies or projects. However, campaigners at Bank on our Future say that HSBC has an opportunity to correct this in its upcoming oil and gas policy to be published by the end of the year.
Having provided £115bn to fossil fuel companies since the Paris Agreement was signed in 2016, HSBC is the largest 13th largest fossil fuel funder in the world, according to campaigners, and continues to finance energy firms with major oil and gas expansion plans, including ExxonMobil and Saudi Aramco.
Andrew Terry, Partner at Harbottle & Lewis says: “The latest ASA report and research is a welcome development, although implementation and resultant greater clarity in green ads will take time.
“In the last few years, the ASA has been reassuringly proactive in trying to clamp down on blatantly misleading greenwashing ads.
“But there are many advertisers with good intentions who come unstuck because green terminology is inconsistent or easily misunderstood.
“So having clearer and standardised definitions for concepts such as carbon neutral and net zero – as well as around electric vehicles – would aid advertisers and consumers alike. The aim is admirable, but the range of interested parties in these issues will make reaching a consensus very challenging.”
