The UK’s Advertising Standards Authority (ASA) has prohibited HSBC from running two advertisements, ruling that they convey misleading information regarding the bank’s climate change initiatives.
This decision marks the ASA’s first formal action against a financial institution for greenwashing. The contested advertisements, displayed at bus stops in Bristol and London in October 2021, failed to disclose crucial details about HSBC’s environmental practices. With prominent messaging in the lead-up to the UN COP26 climate summit, the ads highlighted HSBC’s commitment to allocate up to $1 trillion in financing for clients transitioning to net-zero emissions, alongside an initiative to plant two million trees in the UK.
Following a wave of complaints, the ASA determined that the advertisements lacked significant information regarding HSBC’s contributions to carbon dioxide and greenhouse gas emissions. Specifically, the ruling pointed out that the bank continued to finance industries responsible for substantial carbon emissions.
Robbie Gillett from the campaign organization Adfree Cities, which spearheaded the complaint, remarked, "This ruling represents an important victory in the battle against banks misrepresenting their environmental commitments. HSBC can no longer bombard us with advertisements that suggest they are environmentally friendly while simultaneously supporting practices that exacerbate climate change."
A recent study revealed that greenwashing has become a pervasive issue among UK banks, despite their public assertions of prioritizing sustainability. Research conducted by Censuswide, involving 150 banking executives in the UK, found that while all respondents acknowledged sustainability as central to their business strategy, only 59% actively measure their environmental impact in alignment with their sustainability goals.
Finextra has announced its upcoming Sustainable Finance Live conference and hackathon, slated for November 29. For further details and registration information, please visit the event page.