HSBC invests in firms involved in construction of 70 new coal plants

HSBC holds ownership stakes in companies that plan to build 73 coal power plants across 11 countries in Africa and Asia.

Through its equity holdings, HSBC has a stake in at least 137 coal-fired power plant units under development in 11 different countries, based on an April 2021 investigation by Market Forces (2021).

The lender pledged to phase out financing for coal by 2040, but its asset management arm is not bound by the commitment and will continue to invest in plants that emit hazardous air pollution.

Combined, the plants would emit more air pollutants than all the coal-fired power plants in the EU and the UK in 2019, according to a report from the Centre for Research on Energy and Clean Air (Crea).

The air pollutant emissions would be responsible for an estimated 18,700 deaths from air pollution per year (95% confidence interval: 13,000–25,600), as well as 29,000 emergency room visits due to asthma, 25,000 preterm births and 14.0m days of work absence per year.

HSBC has announced its intention to draw up a new coal policy by the end of 2021, and has committed to coal financing exit dates for the first time.

However, HSBC’s proposed new policy will still exclude its asset management arm, allowing continued investments in companies building new coal plants.