Billion-dollar investment for budding eco-friendly ventures in the climate sector
In the first half of 2025, HSBC committed an impressive £54 billion to sustainable finance projects, underscoring its commitment to a greener future. A significant portion of this investment, £239 million, has been allocated to climate technologies, targeting innovative subsectors that drive the transition to a low-emission economy.
The bank's climate tech project primarily focuses on AI-driven sustainability solutions and low-carbon technologies. These applications leverage artificial intelligence for energy efficiency, clean technology, and other sustainable innovations that support a climate-neutral future.
HSBC's sustainable finance and climate technology investments have a global reach, with a strategic focus on Asia, where approximately 80% of HSBC’s profits are concentrated. The bank supports a wide array of green projects, from renewable energy to advanced climate tech, aimed at accelerating sustainable transitions in various regions worldwide.
With over 600 AI applications underpinning climate and sustainability initiatives, HSBC is at the forefront of technological innovation in the fight against climate change.
However, HSBC's climate credibility has come under scrutiny following its exit from the Net-Zero Banking Alliance (NZBA), raising questions about its climate strategy and commitments. This decision has sparked tension with some green clients who seek stronger climate alignment from their banking partners.
Despite this, HSBC's billion-dollar allocation to global early-stage technology companies for climate protection remains steadfast. The bank supports climate technologies through HSBC Asset Management and its investment in Breakthrough Energy Catalyst, which invests in technologies needed for a global zero-emission economy.
HSBC's climate tech investments span various subsectors, including clean energy, sustainable agriculture, clean mobility, sustainable production and industry, carbon capture and storage, sustainability management and reporting, and sustainable built environment. The focus is on high-potential climate tech companies, regardless of their geographical location.
Gerd Pircher, CEO of HSBC Italy, has stated that HSBC will evaluate opportunities in all markets for climate technology investments. The bank's new initiative, HSBC Innovation Banking, created following the acquisition of Silicon Valley Bank UK, allows for collaboration with businesses throughout their entire growth cycle.
The project aims to support startups in developing new environmental solutions, including clean energy, sustainable agriculture, and clean mobility. HSBC's intention is to support the growth and expansion of eligible companies, including acquisition and international expansion. However, it's important to note that companies must align with HSBC's climate policies, including coal and energy policies.
In conclusion, HSBC's billion-dollar climate technology initiative is a significant step towards supporting the development of new environmental solutions and contributing to the large-scale innovation necessary to reach net-zero emissions by 2050. Despite facing criticism, HSBC remains committed to its sustainable finance goals and the transition to a low-carbon economy.
- HSBC's environmental-science projects, specifically AI-driven sustainability solutions and low-carbon technologies, are part of its £54 billion sustainable finance commitment by 2025, with £239 million dedicated to climate technologies.
- As part of its global reach, HSBC has supported numerous climate tech projects across various regions, encompassing renewable energy, clean mobility, and sustainable agriculture, among others.
- Despite drawing some criticism, HSBC's business strategy continues to prioritize environmental concerns by investing in technology companies for climate protection through its asset management and initiatives like Breakthrough Energy Catalyst.
