HSBC on climate change and Stern

In the past two months, HSBC has further stepped up its environmental agenda, investing millions in partnerships and programs to expand its reputation as a leading company addressing issues of climate change through its business practices.

On 12 July the bank released a comprehensive survey of public attitudes to climate change in nine of the world’s major markets. HSBC’s Climate Confidence Index surveyed 9000 people—1000 from each of the global economic giants Brazil, China, France, Germany, Hong Kong, India, Mexico, the UK and the US.

According to the report, a surprisingly stark contrast exists between developing and highly developed countries regarding optimism that positive developments can be made to combat climate change.

Moving up the spectrum, the survey registered more personal commitment to climate change as the countries become less developed and more developing, one of the most interesting aspects of the survey.

China and Hong Kong rate as “committed confident”, with almost half of respondents stating that climate change is a major concern, but those who should be acting to stop it are doing what is needed.

In complete contrast, France, the UK and Germany are “skeptical pessimists”, with less than 10 percent of those surveyed believing that climate change can be stopped at all and that the necessary action is being taken.

The US is alone in the category of “skeptical optimists”, believing that the problem of climate change may not exist at all so it shouldn’t require much action to fix—hence the optimism that necessary solutions are being found.

Moulding the Consumer

HSBC hopes to use the results to bridge a gap between the global nature of the climate change issue and individual attitudes toward solutions, says Jon Williams, head of group sustainable development at the bank. Focusing the research on people and their beliefs, he said, will help the company to understand public attitudes in an attempt to eventually change consumer opinions and behaviour toward combating climate change.

As a result of the index the bank is now re-evaluating its strategy to offer green financial services, considering developing nations like China and India to take advantage of the higher level of concern and commitment.

Services could include easy loans for sustainable energy products like solar panels and credit cards to help consumers offset their carbon emissions.

Mark Kenber, policy director for the Climate Group, said businesses should be able to inspire more skeptical consumers by providing them with ecologically-friendly products that make economic sense, in turn influencing behavior and attitudes toward trusting the business itself.

In pursuit of this goal, HSBC claims it is already working with the Climate Group and various environmental NGOs in its Climate Partnership: a five-year, $100m commitment. With these partners, HSBC will seek specific goals including adoption of emissions requirements in the UK and US and development of CO2 reduction strategies for China, Brazil and India.

Stern advising on climate

As part of taking action toward addressing climate change, HSBC has appointed Sir Nicholas Stern as its Special Adviser to the Chairman on Economic Development and Climate Change.

Williams said Stern will assist in developing a long-term strategy for HSBC by helping the company understand its impact on the climate. HSBC also expects Stern to advise some of their major clients who want to develop their own business strategies around climate change and economic development.

Of his appointment, Stern says that he intends to incorporate an understanding for climate change into HSBC’s economic models and long-term strategies.


HSBC Index Glossary

Country responses measured on four traits:

Concern: Is climate change among the biggest issues you are worried about today?
Confidence: Are the people and organizations who should be doing something about climate change doing what is needed?
Commitment: Are you personally making significant effort to help reduce climate change through your lifestyle?
Optimism: Do you believe we will stop climate change?

Taken together, these traits lumped countries into four different categories:

Skeptical pessimists—moderately concerned about climate change but have no confidence that people and organizations who should be doing something about it are doing what is needed.
o May be committed personally, but do not believe we will stop climate change
• UK, France, Germany

Skeptical optimists—moderate levels of concern and commitment, but greater confidence that what should be done is being done; hence greater optimism that climate change can be stopped.
o Comments suggest optimism comes from lesser belief in the problem itself, not greater belief in effective solutions. This leads to a lower expectation of what needs to be done, and likewise a greater optimism that it is happening
• US

Committed concerned—highest levels of concern and individual commitment but limited confidence in solutions being carried out.
o Degree of optimism varies
• Mexico, Brazil, India

Committed confident—highest scorers across the index: concerned and committed, set apart by significantly more confidence in people and organizations acting as necessary to combat climate change
o Confidence leads to high optimism that climate change can be stopped.
• China, Hong Kong