By Lawrence White and Simon Jessop
LONDON, Dec 14 (Reuters) – HSBC, Europe’s top banker for Asian companies, laid out its long-awaited policy on financing thermal coal on Tuesday, saying it hoped all its customers would have a plan to ditch fossil fuel by the end. of 2023.
Coal is a controversial issue for governments across Asia, trying to move away from this cheap and widely used but carbon-intensive source of energy to help meet a global commitment to reduce emissions in the fight against climate change. .
Under its plan, HSBC will reduce its funding for thermal coal by at least 25% by 2025 and by 50% by 2030, although non-EU or OECD customers could receive funding until a phase-out occurs at globally in 2040, its sustainability chief told Reuters.
Building on an existing commitment not to fund new coal power plants or thermal coal mines, HSBC said the policy would help phase out the use of existing coal in line with climate change science and would be reviewed annually.
“We have to tackle some of the toughest problems. Coal is one of the big problems. It contributes 25% of global greenhouse gas emissions,” said HSBC Group Sustainability Director Celine Herweijer.
“It is not enough to have a consistent policy of not using more coal. We have to focus our attention on the urgent phase-out of coal along with scientific deadlines.”
As one of the largest European banks and with industry exposure to emerging markets in Asia and elsewhere, HSBC has faced pressure from investors and activists to cut funding for those who use coal, the most polluting of fuels. fossils.
This led some investors to back a shareholder vote on the issue at the company’s annual meeting this year, although they withdrew the threat after the company promised to release details on coal later this year.
In a victory for campaign advocates, HSBC said its new policy would apply to all parts of its business, including its $ 621 billion asset management arm, and would cover all aspects of funding, including funding. refinancing and advisory services.
The bank said it would announce a science-based target for coal power next year in line with limiting global warming to 1.5 degrees Celsius above pre-industrial averages, with progress in reducing funding. of thermal coal to be published annually.
The bank said it would withdraw its services to any customer seeking to expand thermal coal production after January 1, 2021, and that it would stop financing customers in EU and OECD markets where thermal coal accounted for more. 40% of revenue, or 30% from 2025, unless the money was explicitly used for clean technologies or infrastructure.
(Reporting by Lawrence White and Simon Jessop; editing by Barbara Lewis, translated by José Muñoz in the Gdansk newsroom)