A series of sustainability-focused adverts by HSBC Holdings PLC (LSE:HSBA) have been banned by the UK's Advertising Standards Authority (ASA) after 45 complaints were made about their environmental claims.
Statements were made about tree planting and net zero emissions in the adverts but failed to mention HSBC’s funding of fossil fuels and deforestation, leading the regulator to rule them misleading.
ASA said: “We would not expect that HSBC, in making unqualified claims about its environmentally beneficial work, would also be simultaneously involved in the financing of businesses which made significant contributions to carbon dioxide and other greenhouse gas emissions and would continue to do so for many years into the future.”
HSBC has provided £115bn to fossil fuel companies since the Paris Agreement was signed in 2016, according to Adfree Cities, which makes it the 13th largest funder in the world, despite its membership of the Net Zero Banking Alliance.
Robert Gillett, of Adfree Cities said: “This is a significant moment in the fight to prevent banks from greenwashing their image.
"HSBC can no longer ply us with ads pretending they are green while continuing to bankroll climate breakdown in the background. HSBC and other banks such as Barclays and Standard Chartered must stop funding fossil fuels instead of attempting to buy public favour with deceptive marketing campaigns, before these reputational risks turn into legal ones.”
HSBC UK Bank said it had been making the claim in one of the ads since 2020 and aimed to meet the ambition to provide financing and investment globally to help some of its clients transition to net zero by 2030.
The ads appeared on high streets in October 2021 in the run-up to COP26 in Glasgow.