HSBC has announced it is pushing back its 2030 climate target by 20 years, amid a series of changes to its climate goals.

The banking giant initially aimed to achieve net zero emissions by 2050; a target it set in 2020 to align with Paris Agreement goals.

However, it is now extending its deadline to reach net zero in its operations and supply chains, due to a "slower than envisioned" rate of decarbonisation across the globe.

In its 2024 annual report, HSBC said it now expects to achieve a 40% reduction in emissions by 2030, projecting net zero by 2050.

The bank claims to be on track to reduce its operational (Scope 1 and Scope 2) emissions by 90% by 2030, leaving work to do on being fully carbon free in these areas, as well as Scope 3 supply chain emissions by its new deadline.

“We have always recognised that the transition would not be linear," the bank said in its annual report.

"Yet while the transition has progressed, the global pace of change remains insufficient.

"As the UN’s latest Emission Gap report recently warned, current government policies, conventional energy demand, clean technology adoption, and wider consumption patterns are not yet aligned with the Paris Agreement goal of holding the temperature increase to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.”

HSBC has now started a review of its 2030 emission goals - the findings of which are expected to be published later this year.

“We remain committed to net zero, recognising it is a priority for our customers to support their growth and prosperity over the long term," the bank added.

"While no single actor can drive the transition alone, we will continue to actively look for opportunities to support our customers’ transition and engage in the ongoing efforts to achieve the goals of the Paris Agreement.”

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