HSBC coal exit must cut ties with Adani
Campaigners are calling on HSBC to commit to no further financing for The Adani Group, and for the bank to speak out against the proposed AUD$1 billion State Bank of India loan for the destructive Carmichael coal mine in Australia.
HSBC is a major bondholder in Adani Ports which owns the company that will operate the coal haulage from Adani’s Carmichael mine to its port on the Great Barrier Reef. HSBC is also a key financial partner for the State Bank of India, which is considering a AUD$1 billion loan to Adani for the Carmichael coal mine.
Julien Vincent, Campaigner at Market Forces says: “HSBC’s shift out of coal must include divestment from The Adani Group. Adani’s planned Carmichael project will open a massive new thermal coal basin in the midst of a climate crisis.”
“HSBC has acknowledged the expansion of coal is incompatible with the goals of the Paris Agreement. HSBC needs to make clear what its coal exit policy will mean for its investments in the Adani Group, and its partnership with the State Bank of India, which is proposing a $1 billion loan to the Carmichael project.
“HSBC holds shares and bonds in Adani Ports, which is establishing a rail company to transport Adani’s climate wrecking coal from the Carmichael mine. Adani’s elaborate corporate structure means any investment in any Adani company could be funnelled through to Adani’s climate destroying Carmichael coal project.
“HSBC's role in managing bonds for the State Bank of India (SBI) also links it to Adani’s disastrous Carmichael project. The State Bank of India is the only bank in the world which is still open to lending to Adani for the controversial coal project and is reportedly considering a $1billion (AUD) loan to fund the coal project.”
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Photos of #StopAdani protests at HSBC branches can be downloaded here.
Details on HSBC’s new commitment to end coal financing is here on the ShareAction website.
A copy of the statement from HSBC investors is available here.
The three core investor demands of HSBC are:
• A prohibition of general corporate financing and underwriting to companies that are highly dependent on coal mining and/or coal power, as well as companies planning new coal mines, coal plants and coal infrastructure;
• A commitment to help clients develop, publish and implement coal phase-out plans in line with the 2030/2040 timelines by a specific date and no later than December 2023;
• A commitment to focus on the entire coal supply chain, including coal equipment manufacturers and any other coal supply chain function that contributes to the expansion of coal-related activities.