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Glass Lewis ESG Controversy Alert: HSBC

05/09/2021 15:48

07:36 PM EDT, 05/09/2021 (MT Newswires) -- Glass Lewis issued an ESG Controversy Alert on HSBC Holdings (HSBC) Friday, recommending shareholders to vote on the British lender's proposed climate policy that seeks to reduce its exposures to coal-fired power and thermal coal mining from February 2022.

The bank's proposal, aimed at aligning its financing activities with the Paris Agreement, came after a group of shareholders including ShareAction sought to file a shareholder proposal asking HSBC to lay out its short-, medium- and long-term goals to cut its connections with fossil fuel assets,

The shareholder group has since withdrawn its plan to lodge a proposal after "constructive and extensive dialogue and engagement" with HSBC.

"In its place, management has proposed that shareholders vote in favor of a very similar management proposal concerning its alignment of its financing activities with the Paris Agreement," according to the Glass Lewis Controversy Alert

The climate policy proposal will be voted on at HSBC's annual general meeting May 28. Under ESG ratings categories, the proposal falls under climate change and greenhouse gas emissions and board responsiveness.

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