HSBC caves in over financing fossil fuels
hSBC has caved into calls to improve its climate change commitments ahead of its annual shareholder meeting in May.
Major investors had threatened to table their own resolution at the meeting, urging the bank to cut back its financing of fossil fuels.
The threat was enough to force the Asia-focused financial giant into action.
hSBC has pledged to phase out its financing of coal by 2030 in the european Union and the 36 countries of the Organisation for economic Co-operation and Development (OeCD), and by 2040 in other markets.
The bank will also develop a ‘science-based strategy’ to make sure hSBC’s business aligns with the goals of the Paris Agreement, which aims to keep global warming to a minimum. hSBC is to put this proposal forward at May’s annual meeting, and will be bound to it as long as 75pc of shareholders vote in favour.
The concessions from hSBC follow months of negotiations with shareholders, after a group of institutions managing £1.7 trillion threatened to intervene at the bank’s annual meeting.
The group, consisting of 15 institutional investors such as Amundi and Man Group as well as 117 individual shareholders, had filed their own resolution which was set to be voted on at the meeting.
It called on hSBC to publish a climate change strategy and targets while reducing its exposure to fossil fuels.
But they have now agreed to withdraw their proposal and back hSBC’s.
Katrin Ganswindt, finance campaigner at environmental group Urgewald, said: ‘hSBC is the european bank with the biggest exposure to coal on the Asian market. The fact that they are defining an end-date for their coal financing is a long overdue step.
‘It remains to be seen if they will implement stringent thresholds to flesh out their coal exit. The next step should be clear: coal developers have to go immediately.’
lenders such as Barclays and Standard Chartered are still under pressure over their commitments to coal.
BRITISH American Tobacco has taken a 20pc stake in Canadian cannabis producer Organigram as it seeks to carve out a role ‘beyond nicotine’.
The maker of Dunhill and Lucky Strike cigarettes told shareholders that the £126m deal will allow it to deepen its understanding of a ‘rapidly expanding and evolving area’. Organigram grows cannabis and makes cannabis-derived products in Canada, where marijuana was legalised in 2018.
Big tobacco firms in North America have invested in the growing industry, with cannabis seen as less harmful than cigarettes. Democrats in the US have promised to decriminalise its use, and analysts predict record investment this year.
DAVID LAW equalled his lowest score on the European Tour to claim the lead after day one of the Qatar Masters. The Scot carded seven birdies in a flawless 64 at Education City Golf Club to finish a shot ahead of England’s Richard McEvoy, Italy’s Nino Bertasio, Finland’s Kalle Samooja and South Africa’s Hennie Du Plessis. ‘It was a good score,’ said the 29-year-old, who also shot 64 in the opening round of last year’s Betfred British Masters. ‘I played really well. Conditions were quite easy but I was happy with my iron play and I holed some nice putts. ‘I’ve been guilty over the last few weeks when I’ve had decent rounds going of not finishing them off. ‘I was semi-conscious of sticking with it and trying to go low. ‘I was really happy with how I stuck to my routines, my processes and I came out of it with a good score. ‘I’m a lot more focused on my targets rather than my golf swings. ‘Over the last couple of seasons, I’ve been guilty of asking myself why I’ve been hitting bad shots, instead of just going on to hit the next one. ‘Over the break we had, I sat down with my coach Alan McCloskey and (former Open champion) Paul Lawrie, we discussed it and it’s all about getting the ball in the hole now, trusting that you’ve done the hard work and the work’s done.’ Law’s compatriot Scott Jamieson was part of an 11-strong group on four under par, including defending champion Jorge Campillo, who defeated another Scot, David Drysdale, in a play-off last year. Drysdale returned a one-under 70, while fellow countrymen Richie Ramsay and Connor Syme shot 69, Stephen Gallacher 70 and Grant Forrest 71. Former champion Eddie Pepperell, who won the title in 2018 but was disqualified last year, birdied his first four holes before having to settle for a 69 to lie five shots off the lead.