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Banking giant makes $100 billion sustainable financing pledge

Leon Neal | AFP | Getty Images

HSBC has announced it will provide $100 billion in "sustainable financing and investment" by the year 2025.

In a statement Monday, the banking giant said its pledge was one of five new commitments to support what it described as "the transition to a low-carbon economy."

In addition to the $100 billion in financing HSBC said it would, among other things, source all of its electricity from renewable sources by 2030 and cut its exposure to thermal coal. The bank also pledged to both "lead and shape" the debate surrounding sustainable finance and investment.

"The $100 billion commitment that we are announcing today acknowledges the scale of the challenge in making a transition to a low-carbon future," Stuart Gulliver, group chief executive, said in a statement. "We are committed to being a leading global partner to the public and private sectors as they make that transition."

HSBC said that in the past year it had managed to cut both water use and carbon emissions by 9 percent respectively, while energy consumption had fallen by 13 percent.

It is not the only bank looking to boost its green credentials. Earlier this year, JPMorgan Chase said it would "facilitate $200 billion in clean financing through 2025." The bank also said it would be 100 percent reliant on renewables by 2020.

Both HSBC and JPMorgan Chase are members of the RE100, a group of global businesses committed to 100 percent renewable power.