Why Did HSBC Decide to Delay its Net Zero Goal by 20 Years?

HSBC, one of the global leaders in banking, has recently updated its climate objectives.

Originally, it aimed to achieve net zero in Scopes 1, 2 and 3 by 2030 as part of its ambitious environment strategy.

However, in a strategic turn, the date has now been pushed to 2050.

The bank explains the delay by pointing out that “progress in reducing emissions in the Scope 3 supply chain component is proving slower than we anticipated”.

This significant shift in timeline was disclosed in HSBC's 2024 Strategic Report, published on 19 February 2025.
The announcement came shortly after Julian Wentzel was named the new Chief Sustainability Officer of the bank on 7 February.

In another notable decision, the position of Chief Sustainability Officer was removed from HSBC’s executive committee in November 2024, following Celine Herweijer's departure from the role.

Additionally, HSBC announced a review of its interim financed emission targets for 2030 along with associated policies, recognising that updates may be necessary given the current trajectory.

Delving into the details of the delay

According to  HSBC’s report, multiple factors contribute to the revised net zero target:

• Carbon offsets: HSBC says that it expects a 40% reduction across its operations, travel and supply chain by 2030 so reaching net zero would need heavy reliance on carbon offsets. It is taking into account the SBTi’s latest best practice on carbon offsetting
• Slower global pace of change: “Progress in reducing emissions in the Scope 3 supply chain component is proving slower than we anticipated, driven mainly by the slower pace of the transition across the real economy,” the report says. Diversification of the energy mix, technological advancements and market demand for climate solutions are not progressing at the pace HSBC expected
• Policy and regulations: HSBC’s report explains that it is “limited by, and cannot on our own overcome, the present lag in policy measures and the overall slower pace of the transition”.

Despite these setbacks, HSBC remains on target to cut its Scope 1 and 2 emissions by more than 90% by 2030 from a 2019 benchmark.

This is planned through a mix of energy efficiency measures and significant investments in renewable energy sources.

Challenges and progress in financed emissions

“To the extent our customers are facing challenges, especially in light of the slower pace of the transition, there is no real benefit to society in simply sending those customers to another organisation that may be less committed to supporting their transition,” HSBC explains in its report. 

The bank aims to continue supporting both new and current customers who are actively working towards a net zero economy.

The results of the ongoing review of its financed emission targets are expected to be published in the latter half of 2025.

Furthermore, HSBC has made notable strides in sustainable finance — between 2020 and the start of 2025, it provided and facilitated US$393.6bn in sustainable finance, marking an increase of US$99.2bn from 2023 alone.

This effort aligns with HSBC’s broader ambition to facilitate between US$750bn and US$1tn in sustainable finance and investment by 2030.

The global banking and net zero

HSBC’s revised net zero target of 2050 now positions it alongside several major financial institutions with similar commitments.

Other major financial institutions with net zero goals for 2050 include:

• Barclays
• Citigroup
• Goldman Sachs
• JPMorgan Chase
• Lloyds Banking Group
• NatWest
• BlackRock

Among the few aiming for an earlier target are governmental bodies like the Bank of England and the US International Development Finance Corporation, each targeting net zero by 2040.

Additionally, recent industry movements saw BlackRock depart from the Net Zero Asset Managers (NZAM) initiative.

NZAM has since suspended its activities for review.

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