The UK advertising regulator has banned two HSBC ads for being “misleading” about the company’s work to combat climate change.
The Advertising Standards Authority (ASA) said the banking giant could no longer run the ads promoting its plans to reduce harmful emissions.
The watchdog said the placards omitted “essential information” about HSBC’s activities.
It is the ASA’s first action against a bank for so-called “greenwashing”.
An HSBC spokesman told the BBC: “The financial sector has a responsibility to communicate its role in the transition to a low-carbon industry in order to raise public awareness and engage its customers.”
“We will examine how best to do this if we meet our ambitious net-zero commitments,” they added.
Greenwashing – branding something as eco-friendly, green or sustainable when it isn’t – misleads consumers into thinking that by choosing those goods or services they are helping the planet.
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The ads were seen on bus stops in London and Bristol last October ahead of the much-anticipated COP26 United Nations climate summit.
The posters outlined HSBC’s efforts to plant trees and help its customers achieve “net zero” emissions. Net zero means not adding to the greenhouse gases already in the atmosphere by reducing and trying to offset emissions.
The ASA said the ads “omitted material information about HSBC’s contribution to carbon dioxide and greenhouse gas emissions.”
“Customers…would not expect HSBC to be involved in financing companies that were significant contributors to carbon dioxide and other greenhouse gas emissions while making unqualified claims about its environmentally friendly work,” the regulator added.
HSBC’s efforts to combat climate change have come under scrutiny in recent months.
In February, activists accused big banks, including HSBC, of pumping billions of dollars into new oil and gas production despite being part of a green banking group.
London-based ShareAction urged banks to demand green plans from fossil fuel companies before funding them.
ShareAction said 24 major banks that joined the Net Zero Banking Alliance last year have since committed $33 billion (£29.1 billion) to new oil and gas projects.
At the time, an HSBC spokesman said the bank was “committed to working with our clients to achieve the transition to a thriving low-carbon economy.”
Meanwhile, a senior HSBC executive sparked controversy in May when he accused central bankers and other officials of exaggerating the risks of climate change.
Stuart Kirk, global head of responsible investing in the bank’s wealth management division, said: “There’s always a madman who tells me about the end of the world.”
Based in London, his role included considering the impact of investments on environmental, social and governance issues.
In July, Mr Kirk resigned from the bank, saying his comments had made his position “unsustainable”.
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