HSBC Bank (UK) Pension Scheme sets out plans to achieve net zero by 2050 or sooner

11 October 2021

The HSBC Bank (UK) Pension Scheme (the “Scheme”), one of the largest corporate pension schemes in the UK, has today announced its commitment to achieve net zero greenhouse gas emissions across its £36bn Defined Benefit (DB) and open Defined Contribution (DC) assets by 2050 or sooner.

This commitment is being made in the context of the Trustee’s wider efforts to manage the impact of climate change on the Scheme’s investments and the consequent impact on the financial interests of its members. This includes: • targeting a real economy emissions reduction interim target of 50% by 2030 or sooner for its equity and corporate bond mandates, in line with the findings of the most recent Intergovernmental Panel on Climate Change (IPCC) report 1,2; • having the ambition of achieving all of its corporate bond and equity investments being fully aligned to the goals of the Paris Agreement by 2030 across its DB and DC assets; • enhancing its engagement and stewardship efforts through the Scheme’s asset managers

In doing so, the Trustee intends to align its climate risk management principles with the best practice principles set out in the Net Zero Investment Framework published by the Institutional Investors Group on Climate Change (IIGCC).

Russell Picot

Russell Picot, Chair of the HSBC Bank (UK) Pension Scheme Trustee Board, said: “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. 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.”

Source: HSBC Bank Pension Scheme