HSBC accused of greenwashing as watchdog bans poster ads 

HSBC has been accused of ‘greenwashing’ after the advertising watchdog banned posters boasting of the bank’s climate change data.

The lender was ordered to remove all of its “climate change doesn’t do borders” ads, which appeared on bus stops across the country, after the Advertising Standards Authority (ASA) ruled they had misled customers.

The decision will give companies around the world gunshots as they try to bolster their ‘green’ image in an effort to attract customers concerned about climate change.

Robbie Gillett of Adfree Cities campaign group, which led the complaint against HSBC, said: “This is an important moment in the fight to prevent banks from greening their image.

“HSBC can no longer fool us with ads pretending to be green while continuing to fund the climate crisis in the background.

“HSBC and other banks… must stop financing fossil fuels, rather than trying to win the public’s favor with deceptive marketing campaigns, before these reputational risks become legal.”

The complaint to the ASA focused on two HSBC posters. The first was: ‘Climate change does not impose limits. Neither does the rising sea level.

That’s why HSBC is committed to providing up to $1 trillion in financing and investment worldwide to help our customers transition to net zero.”

The second said: ‘Climate changes don’t do borders. So in the UK we are helping to plant 2 million trees that will hold 1.25 million tonnes of carbon over their lifetime.’

The ASA received 45 complaints about the ads, including from Adfree Cities — a network concerned about the impact of corporate advertising — claiming the posters were misleading because they failed to provide “key information about HSBC’s contribution to carbon dioxide emissions and emissions.” greenhouse gases’. .

The lender has previously been targeted by activists because it is one of the largest financiers of fossil fuels.

HSBC argued that its strategy was aligned with global goals for achieving net-zero carbon emissions, citing reports claiming fossil fuels will still be important as industries ‘transition’ from carbon-intensive energy production to new ‘greener’ methods.

But the ASA rejected HSBC’s arguments, stating that “unqualified claims can mislead if they omit important information.”

Consumers would conclude from the advertisements that HSBC made a ‘positive overall environmental contribution’, according to the regulator.

But they would not necessarily understand that the bank was “at the same time involved in financing companies that were major contributors to carbon dioxide and other greenhouse gas emissions,” it added.

The ruling will require banks to exercise extreme caution when making statements about their environmental ambitions.

Companies in every industry are under increasing pressure to show their ESG (environmental, social and governance) credentials.

But this is drawing the attention of regulators, who suspect many companies are exaggerating how green they are in hopes of attracting more investors and customers.

The US financial watchdog, the Securities and Exchange Commission (SEC), has fined the Bank of New York Mellon for allegations that it falsely suggested that some of its funds had undergone ESG quality assessments.

And it’s investigating Goldman Sachs whether some of its funds, which have clean energy or ESG in the title, are living up to their name.

In the UK, the Competition and Markets Authority has warned companies to crack down on so-called greenwashing, initially targeting Asos, Bohoo and Asda fashion collections. And Shell was ordered by a Dutch court to reduce its CO2 emissions ahead of schedule.

HSBC has already caused a stir in the ESG world after Stuart Kirk – then head of responsible investment at the bank’s asset management arm – said earlier this year, “What difference does it make if Miami is six feet under water in 100 years?”

He later left the bank after being suspended, claiming there was too much “groupthink” in the industry.