HSBC encountered notable shareholder resistance at its annual general meeting (AGM) on Friday, with nearly 8% of investor votes opposing the election of new chairman Brendan Nelson. The dissent reflects growing concerns over the bank's recent softening of climate targets, an unusual level of opposition for a first-year chair who would typically expect near-unanimous support.
Voting Results and Board Opposition
At the London AGM, 7.9% of votes went against Nelson's election, while 8.2% opposed the re-election of James Forese as independent non-executive director and chair of the group risk committee. This contrasts sharply with last year, when former chairman Mark Tucker faced less than 2% opposition and Forese received nearly unanimous backing. Although neither resolution failed (requiring 50% opposition), the dissenting votes signal a protest against the board's direction.
Climate Activist Pressure
The pushback followed criticism from ShareAction, a responsible investment campaign group, which had urged investors to vote against Nelson and Forese. During the AGM, a ShareAction representative read a letter signed by 70 climate scientists, denouncing HSBC's decision to weaken its climate ambitions as irresponsible and dangerous. Jeanne Martin, head of the banking programme at ShareAction, stated: "Shareholders have sent a strong message of dissent at HSBC's decision to weaken its approach to coal, oil and gas, undermining long-term financial resilience and feeding into climate impacts people are already facing." She warned that rebuilding confidence would require "decisive action to halt further climate backsliding."
HSBC's Climate Target Revisions
Last May, HSBC delayed its net-zero emissions target for its supply chain by 20 years, moving from 2030 to 2050, citing a slower global transition. Later, it replaced a single-figure 2030 emissions reduction target for polluting sectors like oil and gas with a range, effectively weakening its near-term goal. In 2024, HSBC became the first British bank to exit the banking sector's global climate target alliance, following several US lenders. These changes align with a broader trend of banks softening green commitments amid political divisions on climate action.
Board Engagement and Response
Chairman Nelson agreed to meet with ShareAction and investors to discuss the issue, a move welcomed by the group. However, Martin stressed that only concrete action would restore trust. In a statement, HSBC said: "We welcome shareholders' support at our Annual General Meeting and thank investors for their continued engagement. Our updated Net Zero Transition Plan sets out our commercially grounded sustainability strategy to become a net zero bank by 2050, which reflects the realities of an evolving global transition." The bank emphasised its commitment to supporting customers in hard-to-abate sectors and growth markets during their energy transition.
Wider Context
HSBC is not alone in facing climate-related shareholder activism. Barclays and NatWest have also been targeted by protesters and investor criticism at their AGMs in recent days, highlighting a growing trend of investor scrutiny on climate action across the UK banking sector.
