The bank is collaborating with the World Resources Institute (WRI) and WWF to unlock access to finance to help new climate-based projects create real-world impact. HSBC said it would put in $100 million of funding – half of which will be deployed in Asia – over the next five years to build towards a net-zero economy, according to a statement on Thursday.
Keeping global temperature rises within safe limits requires new thinking and new technology. Asia is particularly vulnerable to climate change, but it is also where solutions are emerging fast, Peter Wong, HSBC deputy chairman and CEO said in the statement.
The partnership covers 14 markets in Asia Pacific, including Australia, India, Indonesia, Hong Kong, Japan, mainland China, South Korea and Vietnam, across three funding streams: energy transition, nature-based solutions, and business innovation.
The bank cited several projects as examples: improving industry access to renewables and green technologies in China, working with partners in Thailand to restore parts of Chiangmai’s degraded forests and advance sustainable agriculture, and supporting Hong Kong start-ups focused on climate innovations.
Ignoring the human impact on climate will delay reducing inequality and achieving sustainable long-term growth in the region, the bank said.
The Climate Solutions Partnership is part of the bank’s previously announced ambitious plans to combat climate change, under which it is setting aside $1 trillion in green financing to support customers in the transition to net-zero.
Climate activists have criticized the bank for its support for the fossil fuel industry, alleging that it has invested some $80 billion in fossil fuels since the Paris Agreement in 2015.
In March, the bank committed to phasing out support for the coal industry by 2030 in the developed world and by 2040 in the developing world, following pressure from activist investors.