LONDON : HSBC Holdings Plc told Reuters on Thursday it will stop financing the expansion of thermal coal from funds it manages actively with immediate effect, marking an acceleration of a broader commitment it made last year.
HSBC said last December it would cut exposure to thermal coal financing, across all its businesses including asset management, by at least 25 per cent by 2025 and 50 per cent by 2030, though non-EU or non-OECD-based clients could be funded until a global phase-out by 2040. HSBC asset management's head of sustainability Erin Leonard said in an interview that the number of companies in the bank's investment portfolio that have so far confirmed plans to expand their exposure to thermal coal was"relatively small".
HSBC aims to have begun engaging with all the companies it holds shares in above the 10 per cent threshold, including those held in its passive funds, by 2025, Leonard said. When it comes to holding the boards of companies with significant thermal coal exposure to account, HSBC said its fund arm would vote against the election of board chairs at companies planning to expand production and use of thermal coal.
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