Thread by @JeanneMartin25

I will be live tweeting from the @HSBC AGM, where HSBC's management-backed climate resolution will be voted on

Expect lots of questions on the #EACOP pipeline, biodiversity, fossil fuels & other ESG issues from @ShareAction & many others

Let's go 👇

#HSBCAGM #AGMactivism

HSBC's Chair of the Board Mark Tucker opens the AGM by reflecting on the past year & the future ahead - a world of uncertainty

He reminds everyone of the reason why HSBC was founded: to connect East & West

He goes through HSBC's future priorities, many of which are ESG-oriented

E.g. He recognises that HSBC has not done enough in the past to foster diversity - but this will change

He ends his speech talking about the need to speed up the transition to net-zero

He recognises that we "need to reduce and ultimately eradicate our reliance on fossil fuels"

HSBC's CEO is next

He talks about HSBC's CSR activities to help the fight against covid-19

He recognises it has had a material impact on HSBC's profitability - but HSBC is still in a strong position, and this year "has gone off to a good start"

HSBC has gone through an extensive exercise to review its purpose

"We always came back to the same theme (..) we have always helped customers find opportunities"

Its new purpose is "capturing a world of opportunities", a challenge that'll stimulate HSBC's entrepreneurial nature

New plan has 4 strategic pillars:

1. Drive growth by focusing on their strengths - e.g. be a market leader in wealth management, esp. in Asia

2. Digitise at scale - "presents opportunities for revenue growth and cost efficiencies"

3. Energising HSBC for growth - he has refreshed the top team of HSBC & reduced senior management numbers in the past year. Plans to reduce their global office footprint & transform the way their work. Priority to improve ethnic diversity across the group.

4. Transition to net zero - "one of our biggest drivers for change". He says HSBC is already a global leader in sustainability, and that in 2020 HSBC was the biggest underwriting of sustainability, social and green bonds for the 2nd year running. It has also committed to net-zero

He mentions the HSBC-backed resolution on climate change: he frames it in terms of "supporting customers" and aligning its financing with the Paris climate goals

He makes it clear that in his view "divestment" is the easy way out - he prefers to help clients transition

A withdrawal of financing *HAS* to be part of the financing if you've commited to net-zero

If engagement is going to be HSBC's main strategy, it *has* to publish its red lines & timebound key expectations for clients in all sectors - not just coal -; & be ready to walk out

He thanks @ShareAction for the constructive discussion we have had in the past few months and he "looks forward to showing how they are planning to deliver on their commitments"

HSBC's Chair joins Noel's thanks

@ShareAction & the investors that filed the initial resolution (now withdrawn) - including @Amundi_ENG @ManGroup @BrunelPP @FolksamMedia - outlined expectations for next steps clear in this letter to HSBC's board 👇

shareaction.org/wp-content/upl…

We were clear that "whilst we have withdrawn the shareholder resolution this year, we may take further action next year if we are unsatisfied with the bank’s progress"

.@ShareAction's question on biodiversity is second 2⃣

Our 2021 asset manager ranking showed that the asset management industry is asleep at the wheel when it comes to #biodiversity

shareaction.org/research-resou…

HSBC has also been under fire for financing some of the world’s most harmful agribusinesses as revealed by this analysis by @Global_Witness 👇

bit.ly/3frDPRa

.@ShareAction is calling on HSBC - the bank and the asset manager - to publish a thorough biodiversity plan & make biodiversity a priority for the 2022 AGM, as well publish sectoral expectations for its investee companies & corporate clients

HSBC responds that the systemic impact of biodiversity is a new topic for investors & it will take years to understand it properly

Mark Tucker says that they've committed to increasing engagement on biodiversity & have joined the Finance Pledge for Nature

He says that they regularly assess clients on sustainability issues and have taken action on biodiversity in the past year - such as by launching HSBC's Pollination Climate Asset Management
pollinationgroup.com/climateassetma…

The next 2 questions are from ordinary shareholders

One on extreme poverty urging HSBC to cancels debts from poverty stricken countries & one urging HSBC to end financing linked to the illegal occupation of Palestine by Israel

HSBC's responses to these questions was (1) No state has asked us to cancel their debts (2) Mark Tucker said they didnt take stances on political issues & referred the shareholder to HSBC's defence policy

.@Market_forces asks a question on the controversial Adani coal project

HSBC committed not to finance the project in 2015

😱Yet it still has links to Adani Ports😱

A large number of investors have already committed not to invest/ finance the company

marketforces.org.uk/news/hsbc-must…

The Chair talks about HSBC's commitment not to finance coal projects (...despite the question being about a company...)

He says their only involvement with Adani Ports is that it is part of an index used by HSBC Asset Management

👎👎👎👎👎👎👎

The next question is from @Ja4change about the Coral FLNG project in Mozambique

The Afungi LNG Park has been reported by Amnesty International, Human Rights Watch & others to have caused mass displacement of 1000s of people

.@JA4change asks if @HSBC do any on-the-ground monitoring of the impacts of Coral LNG on the local communities and environment? If so, who has been contracted to do this & why have they continued to finance the project despite the human rights violations & violence in the region?

HSBC's responds that it cant comment on specific project but that this project will provide lots of economic opportunities - jobs, new schools, etc.

🤦‍♀️🤦‍♀️🤦‍♀️🤦‍♀️🤦‍♀️🤦‍♀️

The next question from @ShareAction asks if @HSBC plans to finance the #EACOP pipeline - a climate wrecking pipeline that would have disastrous social & environmental consequences

@BAaclays @CreditSuisse @BNPParibas & others have already committed not to - will @HSBC follow?

HSBC says they have a "duty of confidentiality" that prevents them from discussing specific projects & companies but they look at *all* financing with "a climate lens"

mmmmm 🤔🤔🤔🤔

theguardian.com/business/2021/… @ReclaimFinance

marketforces.org.uk/news/revealed-… @market_forces

A retail shareholder from Honk Kong asks if HSBC will continue to hold hybrid AGMs in the future - she welcomes the opportunity to join the AGM this year

In Jan 2021 @ShareAction wrote to the Chairs of FTSE100 companies to make AGMs accessible to all

ft.com/content/647177…

Lots of questions on the Midland clawback campaign & special resolution

More info below & also trending at #FightingforFairness

midlandclawbackcampaign.co.uk/hsbc-agm-alert/

Another question by @market_forces on HSBC Asset Management's financing of the coal industry

marketforces.org.uk/news/hsbc-coal…

HSBC must extend its coal exit policy to cover its asset management arm

💯

Mark Tucker says HSBC AM does not finance these companies - they only track indices that might include companies involved in the coal industry

He implies HSBC has no choice - it only responds to client demand

He refers to being a founding signatory of the @PRI_News

🤦‍♀️🤦‍♀️🤦‍♀️

The next question is about #Diversity - HSBC shouldnt adopt a narrow definition of the word

The board unanimously supports "the whole element of diversity" & increasing diversity at all levels

The next question is on HSBC's love affair with #SaudiAramco - a company with no climate plan & involved in severe human rights controversies

HSBC's Chair says they "have a responsibility to remain engaged"

🤦‍♀️HSBC is literally helping Saudi Aramco raise *NEW* funds🤦‍♀️

He reiterates how important engagement is for HSBC, that divestment is the easy way out

📢Repeat 📢after 📢me📢HSBC 📢 is📢helping📢 Saudi 📢Aramco 📢 raise NEW📢funds 📢

.@BankTrack is next - they ask HSBC to respond to the letter sent by the #StopEACOP coalition, urging the bank not to finance the climate wrecking pipeline

They also urge @HSBC to act in line w the findings of the IEA's Net-Zero scenario - i.e. no financing for new fossil fuels

Mark Tucker responds that they cannot comment on specific companies and qualified the IEA NZ scenario as an "excellent report". HSBC will aim to act consistently with the report.

An encouraging statement but one that stands at complete odds with his previous statements???

Another question by @AdamMcGibbon from @market_forces on Adaro Energy with massive coal reserves that is financed by @HSBC

Same stock answer as before - we don't comment on specific transactions; we don't finance coal projects; we want to work with customers; etc

A few comments by HSBC on the NZBA

HSBC believes in helping its clients transition "but these are easy words to say"

The Sustainable Markets Initiative is working on a framework to guide & track climate-related client engagement - suggests it will be published ahead of #COP26

Voting has now closed - the preliminary voting results show that 99.71% of shareholders voted for the management-backed resolution on climate

HSBC is now legally bound to end coal financing & set 1.5C targets covering lending & underwriting

🥳🥳🥳

But it's not time to be complacent

Investors must ensure that HSBC's new coal policy includes immediate exclusions for coal developers, financing restrictions for companies highly dependent on coal & an ask to clients to publish coal phase out plans by Dec 2023 at the latest