Elhedery cuts sustainability chief from HSBC executive committee

HSBC has removed its chief sustainability officer from its executive committee, sparking concerns about the bank's commitment to climate goals amid a broader leadership reorganisation.

The London-based bank confirmed on Tuesday that Celine Herweijer, group chief sustainability officer, was not included in its newly streamlined 12-person operating committee, which replaced the previous 16-member executive committee.

Georges Elhedery, who recently took the helm as chief executive officer, declined to address the implications of Herweijer's removal from the senior decision-making body. However, he emphasised that the bank "remains committed to supporting the transition to net zero".

Climate campaigners argue that having sustainability leadership represented at the executive level is crucial for ensuring climate considerations are properly weighted in strategic decisions and for holding institutions accountable to their environmental pledges.

The reorganisation comes at a time when HSBC's climate credentials are under increasing scrutiny. Following pressure from non-profit ShareAction and institutional investors, the bank committed in 2022 to cease financing new oil and gas fields.

In January, HSBC unveiled its inaugural net-zero transition plan, outlining its strategy to achieve its 2050 net-zero target, including measures to help its highest-emitting clients reduce their carbon footprint.

The banking sector's broader struggle with climate commitments was highlighted last week when Morgan Stanley lowered its expectations for cutting emissions from its corporate lending portfolio, citing slow progress in the global transition to a greener economy.



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