HSBC waters down climate targets
HSBC has weakened its ambition to decarbonise and meet net zero targets, the bank’s latest Net Zero Transition Plan revealed.
The bank has watered down its targets for reducing financed and facilitated emissions from oil and gas, and for power generation.
HBSC announced in July that it has decided to withdraw from the Net Zero Banking Alliance (NZBA), despite being one of the first global banks to set a net zero by 2050 target.
The bank said that NZBA played a role in developing guiding frameworks to help banks establish their initial target-setting approach and that it remains engaged with the Glasgow Financial Alliance for Net Zero to support the mobilisation of capital towards the net zero transition.
Moreover, the bank said that its approach to setting financed emissions targets will continue to be informed by the latest scientific evidence and industry-specific pathways.
However, research data from Anthropocene Fixed Income Institute, which includes figures from Bloomberg, showed that in Q3 2025 the bank earned over $1bn in fossil fuel fees. Most notably, the bank earned even more from its green bonds than fossil fuel deals.
HBSC ranked 20th as the world’s largest fossil fuel financier in 2024, with $67b invested into the sector since 2021, according to the Banking on Climate Chaos Report.
Commenting on this, Christophe Etienne, analyst at Reclaim Finance said: “HSBC’s updated transition plan looks more like a retreat than a recalibration. Having already postponed some targets earlier this year, it has now watered down its decarbonisation targets by introducing flexible “target ranges” and shifting baseline years to make progress look easier. At the same time, its exit from the Net-Zero Banking Alliance and its repeated claim that policymakers, not banks, must drive the transition, suggest HSBC is rejecting any responsibility for delivering on climate goals. HSBC is effectively passing the buck, and in doing so, erodes what little credibility remains in its climate commitments.”
