HSBC Asset Management has announced its intention to phase out coal-fired power and thermal coal from its listed holdings.

HSBC AM says it plans to move away from thermal coal in the EU and OECD markets by 2030, and globally by 2040. Companies failing to transition within the timeframe will lose the support of HSBC AM, including voting against company chairs at AGMs or divesting.

Nicolas Moreau, CEO, HSBC Asset Management said: “This is a determined step to phase out thermal coal. Global emissions will only be reduced if there is concerted collaboration to meet the goals of the Paris Agreement and we are committed to playing our part. We have already stopped direct investments in new or existing thermal coal projects. We are working on two fronts: coal phase out will go hand-in-hand with pioneering new investment solutions in our Alternatives business to scale sustainable infrastructure investment and venture capital for critical climate technology solutions”.