Ripples of Change: The Sustainability Wave

Yesterday, I spoke at the HSBC Private Banking ESG Forum “Ripples of Change: The Sustainability Wave”. A distinguished panel of speakers shared their thoughts, insights and valuable experience in sustainable practices, reminding us how individuals, businesses, governments and communities can play a role to build a more sustainable future for the next generations.

Here are 7 key takeaways, which can hopefully motivate us all to take collective action for the common good of our people and planet.

1. We are in a climate emergency. Sustainability should be high on everyone’s agenda. By making sustainability core to your business strategy, your business can not only mitigate climate and environmental risks, but also adapt and thrive in the long run.
2. A green transition cannot be achieved alone. Achieving net zero will require every company, every financial institution and every investor to adjust their preferences, decisions and business models. Cooperation will make a big difference.
3. Asia accounts for about half of global greenhouse gas emissions. To move the needle on global emissions, the action will be in Asia. The transition to sustainability will spark a green revolution in Asia – by tapping a range of solutions including energy-efficient technologies, renewable energy, sustainable agriculture and infrastructure and smart cities.
4. The use of innovation and technologies will be indispensable, in exploring new ways to lead the change towards the transition to net zero.
5. Universally-accepted frameworks like the United Nations Sustainable Development Goals and the Financial Stability Board’s Taskforce on Climate-related Financial Disclosures can serve as a reference for developing a long-term, holistic and measurable sustainability strategy covering Environmental, Social and Governance (ESG) principles.
6. Sustainable investments will accelerate the transition to a low-carbon future. There is growing evidence that incorporating strong ESG considerations can improve portfolio resilience by mitigating risk. Our preferred way of incorporating ESG into investors’ portfolios is through a multi-asset approach, that actively manages risks and harvests new opportunities.
7. A great deal is at stake and the time to act is now. Any individual, company or community can send forth the first ripple. At HSBC, we will harness our financial strengths to engage and empower our clients through their transition. Our ambition is to provide between USD750 billion and USD1 trillion in sustainable financing and investment by 2030 to support them as they switch to more sustainable ways of doing business.

How is HSBC helping drive change?

• We aim to reduce carbon emissions from our operations and supply chains to net zero by 2030 or sooner, and to align the carbon emissions of our portfolio of customers – to the Paris Agreement goal to achieve net zero by 2050 or sooner.
• We have established a joint venture called HSBC Pollination Climate Asset Management, which seeks to invest in activities that preserve, protect and enhance nature over the long term and address climate change.
• We are committed to invest USD100 million in clean technology through our dedicated venture debt fund, and launch a USD100 million philanthropic programme to help scale climate innovation.
• To act upon our climate pledges announced in 2020, we became a founding signatory to the Net Zero Banking Alliance in April. In the first quarter we raised $68bn for our clients through Green, Social, Sustainability and Sustainability-linked (GSSS) bond issuance.

The transition to a sustainable future is one of today’s biggest challenges – but it is also our biggest opportunity to make a difference for generations to come.