The HSBC Holdings PLC (LSE:HSBA) annual shareholder meeting is expected to see protests inside and outside, with investor criticism over its climate vote and employees demonstrating against a pension clawback practice they say is unfair.
Ahead of the 11am meeting, current and former employees, led by trade union Unite are planning to protest outside the AGM after it emerged that thousands of staff are having as much as £2,500 a year taken from their pension pay outs, which it said disproportionately penalises the lowest paid and mainly female employees.
“It is disgraceful that this profitable and wealthy multinational bank is withholding from pensioners a significant amount of their pension," said Unite's Dominic Hook.
Sharon McGeough-Adams, from the clawback campaign group, said: “Thousands of pensioners, who like me worked hard for HSBC, now find themselves facing hardship in old age because HSBC is denying us the pension we deserve. This is no way for a wealthy profitable company to treat the loyal workforce who contributed to its success.”
Inside the AGM, there will be a special climate change resolution up for shareholder vote.
HSBC’s plans for a net zero aligned finance strategy by 2050 received 99% support at last year’s AGM, with an update on progress appearing in this year’s annual report.
However, many investors will not be comfortable and may wish to oppose the vote, in light of the bank being the biggest European funder of oil and gas expansion despite its net-zero pledge and being accused of 'greenwashing'.
Research from Share Action showed HSBC pumped US$59bn into oil companies, which added fuel to the first from a separate report on greenwashing that found HSBC was one of several banks talking the talk on climate but not actually following up in its actions.
On the back of this report, British hedge fund billionaire Christopher Hohn has urged shareholders to vote against the directors of banks “who are hiding their exposure to climate risk”.
The report by environmental group InfluenceMap found the world’s biggest financial companies provided US$740bn for fossil fuel production over the past two years and are lobbying to weaken sustainability finance policy.
“There is a stark disconnect between what they say about climate change and what they’re actually doing,’’ said report author Eden Coates, referring broadly to the companies. “If they are serious about achieving their net zero targets, they should set concrete and actionable short-term targets across all aspects of their operations."