Corporate cowardice

The suspension of a senior executive at HSBC for comments he made about climate change is the latest example of corporate cowardice in the face of pressure group criticism. Stuart Kirk, a leader in the bank’s responsible investing team, gave a presentation entitled, “Why investors need not worry about climate risk”, during which he reportedly said: “There’s always some nut job telling me about the end of the world.”

Mr Kirk did not deny the threat from global warming, for instance to coastal cities affected by rising sea levels, but argued that he should not have to spend his time looking at “something that’s going to happen in 20 or 30 years”.

One slide said: “Climate change is not a financial risk that we need to worry about. Unsubstantiated, shrill, partisan, self-serving, apocalyptic warnings are ALWAYS wrong.”

When the comments were publicised, HSBC came under pressure to sack Mr Kirk, and bosses have since disowned the contents, even though the title and theme of the talk were known in advance within HSBC.

The corporate world is in thrall to a set of criteria known as ESG – Environmental, Social and Governance. Where once what mattered most to companies was making a profit and delivering dividends for shareholders, now they are expected to measure their activities against ESG standards. It is a new theology in which questioning the articles of faith is to risk a career-ending moment.

Banks that are perfectly happy to operate within countries that are among the world’s biggest polluters balk at any debate that might invite the denunciation of climate campaigners, captured by a form of group-think that brooks no discussion.