HSBC has set emission reduction targets for 2030 for four new carbon-intensive sectors: cement; iron, steel, and aluminum; and the automotive and aviation transport sectors. This is part of their goal to be a net zero bank by 2050 or earlier.

HSBC states, “By helping clients in these industries decarbonize, we can help them play a key role in building and connecting the net zero economy of tomorrow. These sectors are also at the heart of energy demand in today’s economy. Reducing this demand can accelerate the transition from fossil fuels and help meet our energy sector targets.”

As part of their ongoing efforts to align their portfolio to net zero, they plan to set more sectoral targets for 2030 for agriculture, shipping, and commercial and residential real estate.

Later this year, they plan to publish a net zero transition plan for the entire bank, outlining how they intend to incorporate their net zero targets for 2050 and 2030 into HSBC’s strategy, processes, and policies.

Finally, they will continue working to channel capital towards new technologies and key industries to build a net zero future, both directly and in collaboration with industry partners.

The targets in numbers:

• Cement (on-balance sheet financed emission intensity): A reduction from 0.64 tons of carbon dioxide equivalent per ton of cement (tCO2) to 0.46 by 2030.
• Iron, steel, and aluminum (on-balance sheet financed emission intensity): A reduction from 1.8 tons of carbon dioxide equivalent per ton of steel/aluminum (tCO2) to 1.05 by 2030.
• Aviation: A reduction from 84 grams of carbon dioxide equivalent per revenue passenger-kilometer (tCO2/rpk) to 63 by 2030.
• Automotive: A reduction from 191.5 grams of carbon dioxide equivalent per vehicle-kilometer (tCO2/million vkm) to 66 by 2030.