HSBC stops financing thermal coal expansion, report

sxcoal.com Environmental Protection,  Thermal Coal 2022-09-23 16:54:01

HSBC Holdings Plc will stop financing the expansion of thermal coal from funds it manages actively with immediate effect, Reuters reported, marking an acceleration of a broader commitment it made last year.


In a new 10-point plan, HSBC Asset Management, which oversees around $600 billion in assets, said it would immediately stop investing in listings or primary debt issuance of any company engaged in thermal coal expansion, the report said.


HSBC said last December it would cut exposure to thermal coal financing, across all its businesses including asset management, by at least 25% by 2025 and 50% by 2030, though non-EU or non-OECD-based clients could be funded until a global phase-out by 2040.  


The number of companies in the bank's investment portfolio that have so far confirmed plans to expand their exposure to thermal coal was "relatively small", the report cited Erin Leonard, HSBC asset management's head of sustainability as said.


HSBC said it will have engaged with all listed companies in its actively managed portfolios with more than 10% of revenues from thermal coal by next year.


For companies in its active funds with more than a 10% revenue exposure to thermal coal, all initial public offerings and primary debt issuance would be subject to "enhanced due diligence" of the company's plan to transition to net-zero, according to HSBC.


By the end of 2030, the group's active portfolios would hold no listed securities of companies reliant on coal for more than 2.5% of revenues in the European Union or OECD markets; and that would be expanded to all markets by 2040.


When it comes to holding the boards of companies with significant thermal coal exposure to account, HSBC said its fund arm would vote against the election of board chairs at companies planning to expand production and use of thermal coal.


Chairs at companies with more than 10% revenue exposure, and which do not provide acceptable reporting on climate risk, or where transition plans remain weak after a period of engagement, would also face being opposed when they seek re-election.


(Writing by Emma Yang  Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editor's Pick

1 Shaanxi takes the lead in pushing up thermal coal mine-mouth prices 2022-11-30

Several thermal coal mines in Shaanxi, China's third-largest coal-production heartland, started to raise offer prices on November 30, buoyed by increased demand from downstream sectors. S

2 Chinese coking coal gains as COVID-led stock decline spurs demand 2022-11-30

Coking plants in some northern Chinese production areas showed resilient demand for coking coal, after the recent epidemic outbreaks hindered their daily intakes and led to low inventories, which help

3 China futures market updates at close (Nov 30) 2022-11-30

Check out latest updates on the Chinese futures market for thermal coal, coking coal, coke and others at close.

4 China Coal Daily Track (Nov 30) 2022-11-30

Thermal coal Production area The mine-mouth coal market extended the weakness with top miner's move guiding most miners' price cuts. Miners in Ordos, an epidemic-hit coal heartland in Inner Mong

5 China's Nov manufacturing PMI falls further to 48, non-manufacturing PMI down to 46.7 2022-11-30

China's manufacturing and services activity decreased further in November, official data showed on November 30, as COVID-related disruptions intensified. In November, the Purchasing Manag

6 China ready to strengthen energy cooperation with Russia 2022-11-30

China stands ready to work with Russia to forge a closer energy partnership and jointly maintain global energy security, Xinhua News reported, citing President Xi Jinping's congratulatory letter sent

7 CISA: China's coking coal purchase cost up 38.08% in Jan-Oct 2022-11-30

The weighted average purchase costs for China's coking coal and coke in January-October rose 38.08% and 7.54% year on year respectively, showed data from China Iron and Steel Association (CISA).

8 China's steel PMI falls to 40.1 in Nov 2022-11-30

The Purchasing Managers' Index (PMI) in the steel sector, an economic indicator for the industry, declined by 4.2 to 40.1 in November, down for the second straight month, according to the latest data

9 China met coal market in figures (Nov 30) 2022-11-30

China coking coal, met coke and steel market key figures in focus.

10 Sichuan utilities' coal stocks can cover demand till late Apr 2022-11-30

The coal storage of major thermal power enterprises in southwestern China's Sichuan province had reached 5.98 million tonnes as of November 29, beating the scheduled target of 5.8 million tonnes by th

Most Read Articles

1 Germany Sep hard coal imports rebound to 5-mth high 2022-11-24

Germany's hard coal imports reached 2.88 million tonnes in September, a 7.3% rise year on year, rebounding to a five-month high, preliminary data from German Statistics Bureau showed.

2 Newcastle thermal coal prices rise on expectations of surging demand from Europe 2022-11-28

Newcastle thermal coal prices increased as demand is expected to surge in Europe where temperatures are forecast to start dropping dramatically in the next two weeks. On November 25, the

3 Japan Oct crude steel output up 2.9% MoM 2022-11-24

Japan produced 7.35 million tonnes of crude steel in October, up 2.9% month on month but down 10.6% from the previous year, showed data from the Japan Iron and Steel Federation. In the mo

4 Ganqimaodu's imported coal stocks expected to rise as virus disturbs sales 2022-11-24

Imported Mongolian coal stocks at China's Ganqimaodu border port are expected to accumulate after the local authorities stopped outward coal delivery due to the rising COVID-19 infections while mainta

5 Mongolian coal exports up 88% over Nov 11-17 2022-11-25

Mongolian exported 917,100 tonnes of coal from November 11 to November 17, surging 88% year on year,according to data from the Ministry of Mining and Heavy Industry. This brought th

6 NTPC to add 4.8GW coal power projects in next 3 yrs 2022-11-24

India's biggest electricity generating company NTPC was required by the government to award contracts for four more coal-fired power projects over the next three years. These four projects will add 4.

7 Mongolia opens new railway to China 2022-11-28

Mongolia opens a new rail line to China on November 25 in a move to expand commodity exports despite the COVID-slowed cross-border trades. The start of the 226.9-kilometer Zuunbayan-Khang

8 Indonesian low-CV thermal coal prices stable despite weak demand 2022-11-24

Indonesian low-CV thermal coal prices were largely unchanged on November 24 as limited availability offset the gloomy Chinese demand next month. Chinese utilities have been actively invit

9 China's benchmark thermal coal prices slump below 1,300 yuan/t at N ports 2022-11-24

China's 5,500 Kcal/kg NAR thermal coal prices slumped below 1,300 yuan/t FOB northern portson November 23, as traders started dumping cargoes as panic sentiment was growing alongside sharper pri

10 Prices in freefall in China's leading coal hub on harsh COVID restrictions 2022-11-24

Thermal coal prices in China's coal-rich Inner Mongolia have fallen significantly as outbound truck haulage was heavily subdued by the regional COVID measures, market sources said. Accord