Investors turn up heat on HSBC to phase out fossil fuel funding

Banking giant commits to ending support for coal by 2040 as shareholders push HSBC to align itself with climate goals.

HSBC will phase out its support for the coal industry in the developed world by 2030 and in the developing world by 2040, the bank said on Thursday, bowing to investor pressure to toughen its stance on fossil fuel financing. Investors managing some $2.4 trillion in assets who earlier this year filed a resolution that would bind the bank to make stronger commitments, have withdrawn the motion in a sign they have reached a compromise with Europe’s biggest bank. The new goals from HSBC also include short and medium-term targets on aligning its financing with the goals of the landmark Paris Agreement on climate change.