HSBC Exec's Downplaying Of Climate Change Irks Investors, Clients

HSBC is facing queries from customers about its commitment to fight climate change after a senior banker downplayed the risks, sources told Selena Li and Lawrence White of Reuters, with at least one large institutional investor reconsidering whether to employ the bank for a sustainability role.

Photo Insert: Stuart Kirk, who is global head of responsible investing at HSBC Asset Management, told a conference in London that "climate change is not a financial risk we need to worry about."

The investor, which manages in excess of $100 billion, plans to seek opinions from consultants on whether HSBC Asset Management should help manage its sustainability funds in the wake of the controversial comments, said the person with direct knowledge of the matter.

Bank staffers have also sought reassurances about its policies amid concerns about how HSBC will be perceived by clients, two other sources said. The sources declined to be named as they were not authorized to speak to the media. A spokesperson for HSBC declined to comment.

Earlier this month, Stuart Kirk, who is global head of responsible investing at HSBC Asset Management, told a conference in London that "climate change is not a financial risk we need to worry about," comments that prompted the bank to suspend him and conduct an internal investigation

Kirk's presentation was met with criticism from campaigners who have been pressuring the bank and its peers in the financial services industry to play a bigger role in the fight against climate change.

It also prompted The Pensions Regulator in the UK to warn that any pension scheme failing to consider the impacts of climate change was "ignoring a major risk to pension savings."

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