Green campaign group, Make My Money Matter has joined criticism of HSBC for ploughing money into fossil fuels and other polluting activities within its ‘sustainable finance’ investments.
The bank has committed to contribute up to $1 trillion in sustainable finance and investment by 2030. But an investigation by the Bureau of Investigative Journalism found that at least $2.4bn of this was investment into activities that were contributing to the climate crisis, including oil, air travel and mining.
This latest revelation comes a week after HSBC was ordered to remove ‘misleading’ green adverts by Advertising Standards Authority.
Make my Money Matter, which is campaigning for pension funds to stop financing fossil fuel expansion, says it is about to launch a campaign focused on the UK’s big give high street banks.
Make My Money Matter CEO Tony Burdon says: “This latest report brings in to stark focus the gap between the words and actions of banks like HSBC when it comes to fighting climate change.
“Because you can’t claim to be a climate leader while continuing to provide billions of pounds to those companies expanding fossil fuel production, and undermining any chance of limiting global warming to below 1.5C. And you shouldn’t be able to reap the benefits of so called ‘sustainable investments’ while delivering none of the impact needed.
Make My Money Matter is calling on HSBC – and all leading UK banks – to back their words with actions, including by stopping financing fossil fuel expansion, and ramping up investments in real climate solutions. Such steps are popular with the public, critical for the planet, and long term good for our profits.
HSBC said: “In structuring bonds, banks like HSBC follow an industry standard and bonds are subject to independent review and validation, enabling businesses to be transparent about climate or social impact targets. We expect the standards to evolve as the market matures.”
There has been increased demand for ‘green’ or sustainable bonds and investments in recent years, particularly from pension funds and other institutional investors, looking to reduce the carbon emissions on their portfolios. But this latest investigation shows that there is often insufficient scrutiny of the underlying investments of investments that are marketed under a ‘green’ badge.