HSBC Holdings PLC (LSE:HSBA) and Societe Generale SA are among banks that have cancelled applications to get their climate goals approved by a United Nations framework, according to reports.
The banks have reportedly retracted their applications to have their climate targets verified by the Science Based Targets initiative (SBTi), a UN-backed group that sets standards for net zero claims.
That alliance requires banks to reduce their financed emissions to net zero by 2050 by setting interim targets for sponsoring high-carbon sectors.
The banks have withdrawn their applications to have their targets validated because they are concerned it could impact their ability to continue financing fossil fuels, Reuters reported citing sources familiar with the matter.
HSBC has been criticised for funding polluting initiatives, being among the top 20 global banks for fossil fuel financing, and in 2022 said it would no longer finance new oil and gas projects.
These banks still intend to comply with the Net-Zero Banking Alliance (NZBA), another UN-convened group of which they are members, according to reports by Reuters and Bloomberg.
The banks’ decision comes after SBTi updated its framework for the finance industry, while it remains in the process of validating long-term net-zero plans.
SBTi is a voluntary initiative that enables companies and financial institutions to set ambitious and achievable targets in line with current climate science.
Other banks that have withdrawn applications for their climate goals to be approved by SBTi include ABN Amro Group NV and Standard Chartered PLC (LSE:STAN), according to the reports.
The withdrawal of these banks from the UN climate reporting initiative comes as the UN embarks on the COP28 climate summit in Dubai, where many of the world’s biggest banks are expected to attend over the next fortnight.