News Release
9 October 2020

HSBC SETS OUT AMBITION TO
BUILD A NET ZERO ECONOMYHSBC to align its portfolio of financed emissions to the Paris Agreement goal to achieve
net zero by 2050
HSBC to target net zero in operations and supply chain by 2030

(London) HSBC today announced an ambitious plan to prioritise financing and investment that
supports the transition to a net zero global economy, citing a landmark opportunity to build athriving, resilient future for society and businesses.
The bank is committing to align its financed emissions – the carbon emissions of its portfolio ofcustomers – to the Paris Agreement goal to achieve net zero by 2050 or sooner. HSBC has
both the scale and global reach to play a leading role in guiding its customers through thistransition and helping them to achieve this ambitious goal. The bank also aims to be net zero inits operations and supply chain by 2030.
HSBC pledged to work with its customers in all sectors to develop tailored solutions to reduce
emissions. The bank will increasingly prioritise financing and investment that contributes to thelow carbon transition and will apply a climate lens to financing decisions. HSBC’s ambition is tosupport customers with between USD750bn and USD1 trillion of finance and investment by
2030 to help with their transition.
To achieve this ambition, HSBC aims to: Align its business activities to the goals of the Paris Agreement and a pathway to net
zero by 2050 or sooner
 Enhance its support for customers in their transition to low carbon, providing dedicatedfinancing support and advice for their unique transition journeys
 Unlock new climate solutions by creating one of the world’s leading natural capitalmanagers, creating a USD100m venture debt fund for CleanTech innovation, andlaunching a philanthropic programme to donate USD100m to bring new solutions toviability and scale Work in partnership with its peers, customers, regulators, governments and wider
society to effect change across the financial system
HSBC is well-established as a leading player in the transition to a low carbon economy. In 2017,
the bank committed USD100bn of sustainable finance by 2025, and has since launched anumber of award-winning products, and been recognised as a leading bank for sustainablefinance. However, the bank recognises that achieving the Paris Agreement goal will require
extra effort, at a faster pace, and plans to use its scale and global reach to seek to accelerate
the transition to net zero.
Group Chief Executive Noel Quinn said:“HSBC has long been committed to opening up opportunities for our customers and thecommunities we serve. As we enter a pivotal decade of change, we have a landmark
opportunity to accelerate our efforts to build a healthier, more resilient and more sustainable
future. Our net zero ambition represents a material step up in our support for customers as wecollectively work towards building a thriving low carbon economy.”

Principal members of HSBC in Japan are:
The Hongkong and Shanghai Banking Corporation Limited
HSBC Securities (Japan) Limited
HSBC Global Asset Management (Japan) K.K.

HSBC’s commitments in detail

1. Becoming a net zero bankAlign our financed emissions – the carbon emissions of our portfolio of customers– to the Paris Agreement goal to achieve net zero by 2050 or sooner.
Use the Paris Agreement Capital Transition Assessment Tool (PACTA) to develop
clear, measurable pathways to net zero.
Make regular, transparent, TCFD-aligned disclosures to communicate our progress,and encourage our customers to do the same.
Work with our peers, central banks and industry bodies to mobilise the financial system
around a globally consistent, future-proofed standard to measure financed
emissions, and a functioning carbon offset market.
Aim to achieve net zero in our operations and supply chain by 2030 or sooner.

2. Supporting our portfolio of customers to thrive through transition
Work with our portfolio of customers to support them on their journey to lower
carbon emissions, bringing together our dedicated ESG Solutions team, our awardwinning products, and experts across the bank to develop tailored solutions for ourcustomers.
Prioritise financing and investment that supports our customers in all sectors to transition
to lower carbon emissions. Our ambition is to provide between USD750bn and USD1
trillion of financing and investment for this purpose over the next 10 years.
Increase our portfolio of transition finance solutions to help enable even the mostheavy-emitting sectors to progressively decarbonise, while helping to ensure a just andstable transition to maintain economic stability.
Apply a climate lens to our financing decisions, taking into account the uniqueconditions for our clients across developed and developing economies.

3. Unlocking next-generation climate solutions

Build one of the world’s leading natural capital managers – to mainstream natural
capital as an asset class, and invest in activities that preserve, protect and enhancenature over the long-term. For this purpose, we have created HSBC Pollination Climate
Asset Management.
Set up a dedicated unit and tailored proposition to support CleanTech innovationcompanies and target USD100m CleanTech investment within our technology
venture debt fund.
Launch a philanthropic programme to donate USD100m to scale climate innovation
ventures, renewable energy, and nature-based solutions between now and 2025.
Help transform sustainable infrastructure into a global asset class, and create apipeline of bankable projects, leading the FAST-Infra initiative together with the OECDand the World Bank.
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Note to editors:
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves
customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia,North America, Latin America, and Middle East and North Africa. With assets of US$2,923bn at 30 June
2020, HSBC is one of the world’s largest banking and financial services organisations.
HSBC’s History of Sustainable FinanceThe bank’s ambitious climate declaration builds on its leadership in sustainable finance and addressing
climate change.
In 2017, HSBC pledged to provide USD100bn in sustainable financing and investment by 2025.
In 2020, HSBC was named the World’s Best Bank for Sustainable Finance by Euromoney, which
noted that “across every sector and region HSBC stands out for its commitment to developing
partnerships and products that will bring finance at scale to create a more sustainable and resilientplanet.”

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Last month, The Banker named HSBC as Investment Bank of the Year for Sustainability in its 2020
awards, praising “an impactful and holistic approach to environmental, social and governance (ESG)
issues across many geographies, products and services and for a range of clients”.
HSBC is ranked the number one global bookrunner of green, social and sustainability bonds for theyear to the end of September, according to Dealogic.
HSBC has been ranked a leading research house in ESG (Environmental, Social and Governance) forthe past five years, according to external surveys that include Extel and Institutional Investor.
HSBC is a member of RE100, committed to sourcing 100% of our own electricity consumption fromrenewable sources

HSBC’s Recent Innovative Green Solutions


The bank acted as Green Structuring Advisor and Lead Manager on the world’s first plastic waste
reduction bond for German consumer goods firm Henkel in July.
HSBC played a major role in a USD743m green loan for the Viking Link interconnector project in Junethat will allow the UK and Denmark to share renewable energy via an underwater cable.
The bank helped both Burberry and Chanel launch their inaugural sustainability bonds in September,the first luxury brands to enter the green bond market.
HSBC Global Asset Management launched the Real Economy Green Investment Opportunity(REGIO) last year that enables investors to align their financial objectives with real economy impact todeliver against the Paris Agreement and Sustainable Development Goals.
The bank has pioneered sustainable supply chains, including its partnership with US retail giant
Walmart and a Sustainable SCF facility for sports brand Puma globally covering suppliers in 17countries.

Terms and definitions

Our ambition to provide between USD750bn to USD1 trillion in finance and investment to support ourcustomers in their transition to net zero extends our 2017 commitment to provide USD100bn ofsustainable finance by 2025.
The ambition includes HSBC’s financing, facilitation and investment activities, and reflects anaggregation of financial flows (volume) where sustainability criteria are applied to the financing,facilitation or investment activities enabled through HSBC’s businesses and client relationships.
Updated definitions will be published on HSBC.com
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