The bank expects to provide between US$750bn and US$1 trillion in financing and investment to help its customers decarbonise as it eyes an opportunity for long-term, sustainable growth.
It will involve phasing out the financing of coal-fired power and thermal coal mining by 2030 in markets in the EU and OECD, and by 2040 in other markets.
HSBC’s current policies prohibit financing new coal-related projects, but thermal coal is still used as a power source in many countries across the world.
The FTSE 100 group plans to carry out analysis on customers by industry sector, beginning in 2021 with Oil & Gas and Power & Utilities, and extending to other sectors in 2022, such as Automotive, Building Materials and Construction.
It also intends to set short- and medium-term targets on a sector by sector basis that are consistent with net-zero outcomes by 2050, following science-based scenarios that follow 1.5°C warming pathways.
It will be the only resolution on climate change at this year's AGM, after ShareAction and other shareholders who had originally proposed a separate resolution decided to withdraw it to focus on the bank’s.
Last October, HSBC vowed to go net-zero by 2030 and to align the bank's financed emissions at a portfolio level to net-zero by 2050 or sooner.
The shares dipped 4% to 428.8p early on Thursday.