HSBC will stop financing new oil and gas fields as well as coal projects as part of its efforts to drive down global greenhouse gas emissions, the British financial services company has announced.
HSBC said it would reject prospective oil and gas companies if more than 10% of their planned capital spending was dedicated to project exploration, under its updated energy policy released on Wednesday.
Environment groups said the move sends “a strong signal” to fossil fuel giants that investment is waning. the bank said the decision had been made “follow[ing] consultation with leading scientific and international bodies” who had estimated that current oil and gas fields would meet any demand in 2050 under a “net-zero” scenario.
It comes following previous criticism of HSBC for funding oil and gas projects despite its green pledges. The latest move could ease tensions with investors after it managed to avoid a revolt last year over its financing of fossil fuels.