• HSBC facing investor pressure over climate backtracking
• Group managing £1.2 trillion demands reaffirmation of net-zero goals
• Bank delayed operational net-zero target from 2030 to 2050
• CSO role removed from HSBC executive committee
• Investors include Church of England and Rathbones
• ShareAction says the bank is sending concerning signals
• Julian Wentzel appointed CSO following Herweijer’s departure
• The annual report cited a revisited ambition for climate targets
• Rivals Barclays and JPMorgan share similar 2050 timelines
• Investors call for urgent shareholder dialogue on climate direction

HSBC is facing sharp criticism from a coalition of 30 institutional investors managing nearly $1.6 trillion in assets, demanding the British bank urgently reaffirm its climate goals and commitment to the energy transition.

The investor group, coordinated by ShareAction, issued the call during HSBC’s annual general meeting, warning that the bank’s recent moves have sent troubling signals about its dedication to managing climate risk.

The group, which includes heavyweights such as the Church of England Pensions Board, Rathbones Investment Management, and the Greater Manchester Pension Fund, urged HSBC to engage directly with shareholders and commit to building on, rather than retreating from, its previous climate progress.

Their concerns stem from a series of actions by HSBC in recent months. In February, the bank appointed Julian Wentzel as its new Chief Sustainability Officer, filling the role permanently after more than a month in an interim capacity.

The move followed the abrupt departure of Celine Herweijer and a corporate reshuffle that notably removed the CSO role from the bank’s executive committee – a decision seen by many as a downgrade in the importance of sustainability within HSBC’s leadership structure.

Adding fuel to the fire, HSBC’s annual report, released just days after Wentzel’s appointment, revealed that the bank had delayed its net-zero emissions target for its operations, travel, and supply chain by two decades – from 2030 to 2050.

The change aligns the bank with the timelines of peers like JPMorgan Chase, Bank of America, and Barclays, but has deeply unsettled many stakeholders who had previously viewed HSBC as a climate leader.

Jeanne Martin, head of ShareAction’s banking program, accused HSBC of casting doubt on its climate priorities at a time when climate risk is accelerating.

She argued that while the bank had once been at the forefront of climate leadership in the sector, its recent actions have created confusion and concern among responsible investors who are left questioning the bank’s long-term intentions.

While HSBC has defended its overall strategy and reiterated its support for the transition to net zero, the lack of transparency and perceived retreat from ambitious short-term targets has alarmed investors focused on sustainability and long-term economic stability.

The investor letter calls for immediate engagement and a reaffirmation of HSBC’s role in advancing global climate goals.

With the financial sector under increasing scrutiny for its role in financing and enabling climate-aligned progress, HSBC’s handling of its sustainability agenda is now being seen as a bellwether for broader industry trends.

Whether the bank responds with renewed transparency or continues down its current path could define its reputation for years to come.