HSBC Updates Net Zero Plan, Adjusts 2030 Climate Targets

HSBC Holdings released its updated 2025 Net Zero Transition Plan (NZTP), reaffirming its goal to become a net zero bank across its financed emissions, operations, and supply chain by 2050. The revised plan updates its 2030 interim targets, shifting from fixed reduction goals to target ranges to reflect what the bank describes as an uneven global transition across sectors and regions.

In 1H25, HSBC mobilized US$54.1 billion in sustainable finance and investment, a 19% year-on-year increase, bringing its total since 2020 to US$447.7 billion toward its goal of US$750 billion to US$1 trillion by 2030. The bank also reported a 30% reduction in absolute on-balance-sheet financed emissions across target sectors and a 76% cut in direct Scope 1 and 2 emissions compared with 2019 levels.

The new plan centers on three pillars: supporting customers’ transitions, embedding net zero into operations, and fostering partnerships to build an enabling environment. HSBC emphasized that its approach is now more customer-focused and commercially grounded in light of slower-than-expected decarbonization across the real economy and varying policy environments.

Georges Elhedery, CEO, HSBC Group, said the plan was designed to reflect global economic realities. “Against this wider landscape, we have refined our approach. Developed in the spirit of putting our customers at the heart of everything we do, our updated Net Zero Transition Plan reflects the realities of an evolving transition playing out very differently across the global economy, and the scale of opportunity it presents our customers.”

The updated plan includes 2030 financed-emissions reduction targets across seven high-emitting sectors: oil and gas, thermal coal and mining, power and utilities, automotive, aviation, iron and steel, and cement. HSBC stated that 97% of its total reported emissions are associated with clients in these sectors.

However, the new approach has drawn criticism from climate groups and investors. Advocacy organization ShareAction called the shift “irresponsible behaviour from one of the largest banks in the world at a time when extreme heat, droughts and floods are destroying lives and economies.” 

HSBC’s withdrawal from the Net-Zero Banking Alliance earlier this year has intensified scrutiny of its climate governance. Critics argue that by softening interim goals and shifting responsibility toward policymakers, the bank risks undermining sector-wide progress.