This is part of the company's wider revamp of its energy policy as it seeks to adopt more sustainable financing practices in line with the goals of the Paris Agreement on climate change. While it will still fund natural gas projects in the near future, this is largely due to the current energy crisis resulting from the war in Ukraine.
HSBC has come under increased pressure in recent years to reduce its involvement in financing thermal coal and other fossil fuels, including protests at its annual shareholder meeting and numerous media campaigns. This shift in policy comes after public scrutiny over the bank's commitment to climate action, following comments from its global head of responsible investing that had downplayed the risks associated with climate change.
HSBC's new commitment to phasing out funding for new oil and gas fields marks an important step towards a more sustainable industry, with the hopes that the move will encourage other banks to follow suit in creating a long-term, climate-friendly industry.
'HSBC to Commit to Net Zero Emissions and Stop Funding New Oil and Gas Fields'