HSBC weakens climate targets, delays net zero by 20 years—CEO gets £9m bonus as green goals shrink.
HSBC has sparked outrage after announcing a 20-year delay to key climate commitments, citing “challenges” in reducing emissions—while at the same time boosting its CEO’s potential bonus to 600% of his salary.
The bank originally pledged to make its own operations net zero by 2030, a goal that was already far less ambitious than tackling the emissions of companies it finances. Now, HSBC has pushed that deadline back to 2050, admitting it would have to rely on carbon offsets just to reach a 40% reduction by 2030.
Meanwhile, the bank has weakened the environmental requirements in CEO Georges Elhedery’s long-term incentive plan (LTI), reducing the portion linked to green targets from 25% to 20%. This change means his performance bonus—worth up to £9 million—is even less tied to sustainability.
The move has fuelled accusations that HSBC is abandoning its climate commitments while rewarding top executives for inaction.
Excuses and Corporate Backtracking
In its annual report, HSBC claimed that progress in reducing emissions had been slower than expected, particularly in its supply chain. The bank insisted that revising its targets aligned with the “latest best practice on carbon offsets.”
Critics, however, argue that this is just corporate greenwashing. HSBC’s claim that tracking the emissions of its loan portfolio and client base was “difficult” has been widely condemned as an excuse to avoid real accountability.
“HSBC helped create this crisis by funding fossil fuels, and now it’s acting like cutting emissions is impossible,” said Joanna Warrington of Fossil Free London. “They’re sitting back and watching the world burn while handing out massive bonuses.”
Profits Up, Planet Down
Despite its failure to meet climate goals, HSBC remains highly profitable. The bank posted a 6.6% rise in pre-tax profits, hitting $32.3 billion in 2024. At the same time, it has launched a cost-cutting drive to save $1.5 billion (£1.2 billion) by 2026, which is expected to include job losses across its 220,000-strong workforce.
Climate U-Turn in a Changing Political Landscape
HSBC’s announcement comes amid a broader climate retreat in the financial sector. In the US, President Donald Trump has aggressively rolled back environmental policies in favour of oil and gas expansion. In response, several major American banks—including Citigroup, Bank of America, and Goldman Sachs—have pulled out of the UN’s Net-Zero Banking Alliance (NZBA).
When pressed on whether HSBC would remain in the NZBA, Elhedery gave a vague response, simply confirming that HSBC was still a member.
With shareholders set to vote on the controversial pay proposals this spring, HSBC faces mounting pressure to justify its climate backtrack and the eye-watering sums it is offering its CEO.
