HSBC Bank’s UK pension scheme sets 2050 net zero target

Covering both its defined benefit (DB) and open defined contribution (DC) assets, the net zero target also includes an interim goal to halve emissions for equities and corporate bonds by 2030, against a 2019 baseline.

By the end of the decde, the pension scheme said it was aiming for all of its equity and corporate bond investments to be fully aligned to the goals of the Paris Agreement.

“The trustee recognises the increased urgency with which climate change needs to be tackled and in it playing an active role in supporting the drive to decarbonise the economy,” said Russell Picot, chair of the pension scheme’s trustee board. “It has been active in addressing ESG issues for a number of years, including working in collaboration with regulators, policymakers, asset managers and other asset owners to facilitate the system-wide transition to a net-zero economy. The time is right to take the next step to further embed climate change actions into our future plans for the benefit of our members.”

The scheme said it would also enhance its engagement and stewardship efforts through its asset managers, and that it intends to align its climate risk management principles with best practice recomemndations from the industry-wide Net Zero Investment Framework initiative (NZIF). The pension scheme has already been reporting in line with the recommendations of the Taskforce on Climate-related Financial Disclosures for several years.

HSBC Bank UK’s pension scheme is also a signatory of the Principles for Responsible Investing, a member of the Institutional Investors Group on Climate Change – which launched the NZIF in March – and a supporter of Climate Action 100+, it pointed out.

A version of this article was originally published at Professional Pensions.