HSBC, Europe’s largest bank in Asia, has unveiled its long-awaited thermal coal financing policy, and said it expects all its customers to have a plan to give up fossil fuels by the end of 2023.
Coal is controversial for all Asian governments as they try to move away from cheap but widely used energy (coal) in order to meet the global commitment to reduce emissions in the fight against climate change.
Under its plan, HSBC will reduce its exposure to thermal axis financing by at least 25% by 2025 and by 50% by 2030, although its non-EU or non-OECD customers could be funded by phasing out in 2040.
Based on an existing commitment not to fund new coal-fired power plants or thermal mines, HSBC said the policy would help phase out existing coal use in the science of climate change, and would be reviewed annually.
“We have to deal with some of the difficult issues at the front. Coal is one of the big issues. It accounts for 25% of global greenhouse gas emissions,” said the head of the bank’s sustainability unit.
Source From: Capital