By Joe Hoppe

 

HSBC Holdings PLC said Tuesday that it will phase out its financing of thermal-coal power and mining and it won't provide new financing to companies with plans that are incompatible with its own sustainability targets.

The London-based bank said that it will phase out phase-out thermal coal financing in the European Union and countries in the Organization for Economic Co-operation and Development by 2030, and world-wide by 2040. It will also cut its exposure to thermal-coal financing by at least 25% by 2025 and by 50% by 2030.

The bank said it expects all of its existing thermal coal-related clients to publish transition plans, and it won't provide new financing where plans are incompatible with its target of net-zero greenhouse-gas emissions from clients' portfolios by 2050.

The company also said it will decline new financing, refinancing or advisory services to thermal coal-related clients that fail to show a credible plan to transition in an acceptable timeframe.

"We want to be at the heart of financing the energy transition, particularly in Asia. This is where we can have the biggest impact to help the world achieve its target of limiting global warming to 1.5 degrees Celsius," Chief Executive Noel Quinn said.

 

Write to Joe Hoppe at joseph.hoppe@wsj.com

 

(END) Dow Jones Newswires

December 14, 2021 03:19 ET (08:19 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Hsbc (LSE:HSBA)
Historical Stock Chart
From Apr 2022 to May 2022 Click Here for more Hsbc Charts.
Hsbc (LSE:HSBA)
Historical Stock Chart
From May 2021 to May 2022 Click Here for more Hsbc Charts.