Climate change is a reality that requires a low-carbon economy, which in turn, offers opportunities for businesses across a wide range of industries, according to one of the leading global financial institutions.
HSBC special adviser to the Group Chairman on Economic Development and Climate Change Lord Nicholas Stern added that the recent financial turbulence shows that the longer risk is ignored, the bigger will be the consequences if the economies fail to immediately shift towards a low-carbon economy.
“To tackle climate change, we should encourage investments in a direction where there are opportunities for more sustainable growth. At the same time, we can boost output in the short term, for example, through investments in energy efficiency,” he added.
In a climate change forum with HSBC executives, bank customers and the general public held in Hong Kong recently, Lord Stern welcomed the leading role played by HSBC in addressing the challenges of climate change.
“As a global company, HSBC understands that it has a strong role to play in the fight against climate change. In this turbulent time, the importance of maintaining a long-term focus is even greater. Organizations of this scale should embed the principles of sustainability into their business and respond strategically to the new risks and new opportunities,” Stern said.
Meanwhile, HSBC Corporate Sustainability Asia-Pacific Region head Teresa Au, said that the global bank was the first major bank to become carbon neutral since 2005. Being carbon neutral reflects our commitment to be at the forefront of sustainable business operations.
“Despite the current financial crisis, we remain steadfast in our commitment to corporate sustainability works and to supporting our clients in building sustainable businesses. Sustainability is core to HSBC’s business strategy,” Au added.
The Climate Group organized this year’s climate change conference. The group is one of HSBC’s global partners in the HSBC Climate Partnership. The one-day conference brought together about 180 business leaders, government officials, environmental experts and non-government organizations (NGOs) representatives to set the path towards a low-carbon economy for Hong Kong and the Pearl River Delta region.
Last month, HSBC, or the Hongkong and Shanghai Banking Corp., extended $400 million to four global institutions known for their determination to fight climate change.
The recipients of the largest corporate donation are The Climate Group, Earthwatch Institute, Smithsonian Tropical Research Institute, and the WorldWildlife Fund (WWF).
It is considered a groundbreaking, five-year partnership between HSBC and The Climate Group, Earthwatch Institute, Smithsonian Tropical Research Institute and WWF. The investment – the largest-ever corporate donation to each of these four world-class environmental charities – aims to combat the urgent threat of climate change by inspiring action by individuals, businesses and governments worldwide.
The global financial institution said that its efforts could counter climate change for people, forests, water and cities.