HSBC Holdings has announced a detailed policy to phase out the financing of coal-fired power and thermal coal mining by 2030 in EU and OECD markets, and worldwide by 2040. The policy will see HSBC phasing out finance to clients whose transition plans are not compatible with HSBC’s net zero by 2050 target. The bank will work with impacted clients and will expect them to formulate and publish transition plans by the end of 2024 that are compatible with HSBC’s net zero by 2050 target. HSBC will decline to provide new financing, including refinancing, and advisory services to any client that, in the view of the bank, fails to engage sufficiently on its transition plan, or where plans are not compatible with HSBC’s net zero by 2050 target. In addition, HSBC will seek to withdraw any financing or advisory services with any client that makes a commitment to, or proceeds with, thermal coal expansion after 1 January 2021. It builds on current HSBC policy that prohibits finance for new coal-fired power plants and new thermal coal mines; broadening the approach to drive the phase-out of existing thermal coal. The thermal coal phase-out policy will be reviewed annually and forms a key part of executing the bank’s October 2020 ambition to align its financed emissions, the greenhouse gas emissions of its portfolio of clients, to net zero by 2050 or sooner.