HSBC
Target year:
2050
KEY:
targets
coverage
governance
offsets & sinks
Target Status
No target
Proposed / in discussion
Declaration / pledge
In corporate strategy
In law
Achieved (self-declared)
Achieved (validated)
First interim target
Type of interim target
No target
Emissions reduction
Absolute reduction
Intensity reduction
BAU reduction
TARGETS
Target Year
The year an entity aims to be net zero.
Target Status
- Achieved (externally validated): Net zero has been externally verified by an independent third party. e.g. the Science Based Targets initiative
- Achieved (self-declared): Net zero has been declared unilaterally by the entity but not verified externally.
- In law: The target has legal force, for example is enshrined in legislation or in an administrative order.
- In policy document: The target is included in a policy or planning document. For countries, for example, this could include policy strategy documents published by ministries, as well as Nationally Determined Contributions (NDCs) and/or Long-term Strategies (LTSs) that have been submitted to the UNFCCC.
- In corporate strategy: The target is in a corporate policy or planning document, for example, in a company’s annual sustainability or corporate social responsibility (CSR) report.
- Declaration / pledge: The entity has announced a target but not yet institutionalised that pledge in any way (e.g. merely referenced in a press release, verbal announcement by Head of Government, etc.)
- Proposed / in discussion: The entity’s leadership is considering a target or has joined an international initiative (e.g. the Climate Neutrality Coalition or Climate Ambition Alliance) pledging to set a net zero target, but it has not yet taken steps to operationalise this pledge.
Interim targets
Interim targets can come in many different varieties using many different baselines, some of which are more transparent and robust than others. In general, ‘emissions reduction targets’ and ‘absolute emissions targets’ are more robust than other types of targets.
- Emissions reduction targets aim to decrease annual greenhouse gas (GHG) emissions by a target year compared with a historical baseline year, for example ‘X will reduce its GHG emissions by 50% below 1990 levels by 2030.’
- Absolute emissions targets specify an amount of emissions to aim for by a certain year or time period, regardless of what it currently is. e.g. ‘X will reduce emissions to no more than 10m tonnes of CO2e in 2025.’ Some entities may set an absolute emissions target over a period of e.g. 5 to 10 years.
- Emissions intensity targets set an emissions target relative to a non-emissions unit such as per unit of output or per unit of GDP, for example ‘X will reduce the amount of CO2 emissions produced per unit of GDP by 18% over the period 2021 to 2025.’
- Reduction against Business as Usual (BAU) specifies a reduction compared with a baseline of what emissions were projected to have been at a certain date, for example ‘X will reduce emissions 29% below business-as-usual by 2030.’
For more information, see our methodology
Greenhouse gases
CO2 + others
CO2 only
Not specified
Historical emissions
Yes
No
Full coverage of Scopes 1 and 2
Yes
No
Not specified
Scope 3 coverage
Yes
Partial
No
Not specified
COVERAGE
Greenhouse Gas Coverage
Greenhouse gas coverage specifies the scope of gases affected by the target.
- Carbon dioxide (CO2) and other GHGs: Net zero has been externally verified by an independent third party. e.g. the Science Based Targets initiative
- Carbon dioxide (CO2) only: The target only covers the entity’s carbon dioxide (CO2) emissions.
Territorial Emissions
Territorial emissions, sometimes called production emissions, are those all emissions generated within a country, city, or region’s geographic boundaries.
Consumption Emissions
Consumption emissions represent emissions embodied in goods and services that are imported from outside a country, city, or region’s boundaries.
Historical emissions coverage
This is when an entity commits to removing an amount of CO2 from the atmosphere equivalent to its emissions footprint over its lifetime. To achieve this, an entity first must become ‘carbon negative’ and remain so until its aggregate carbon removals neutralise its historical emissions footprint in full.
International aviation and shipping (countries only)
Under the UNFCCC process, GHG emissions from international aviation and shipping are excluded from national emission inventories. Many national net zero targets announced as of October 2021 leave out their share of emissions from international aviation and shipping. If these sectors were nations, each would rank in the top ten of global emitters.
Emission scopes (companies only)
Corporate actors include different emission sources in their target scopes.
- Scope 1 emissions are direct GHG emissions that occur from a company’s operations, for example from fuel combustion, company vehicles and manufacturing processes at a company’s factories.
- Scope 2 emissions are indirect emissions from purchases of electricity, heat, and cold.
- Scope 3 emissions are all other indirect emissions from across its downstream and upstream value chain, including among other the products it buys or sells, waste disposal, business travels and investments.
Scope 1 We focus on companies’ own claims to include Scope 3, but do not provide an objective assessment of the boundaries of those emissions for the time being.
For more information, see our methodology
Detailed plan
Complete
Incomplete
No plan
Annual reporting mechanism
Yes
Less than annual
No mechanism
Refers to equity
Yes
No
Formal accountability
Yes
No
Not specified
Governance
Plans
We capture information on publicly available plans that underpin an entity’s net zero target, recognising that some may not be public. A plan is defined as a technical document that outlines concrete steps and measures that will be taken to advance toward the target, including a timeframe in which they will be taken. A detailed plan should outline expected emission reductions from proposed actions and measures, the extent to which each measure will be applied by when, and the binding review and updating process.
Reporting
We capture information on an entity’s public reporting mechanisms about its progress towards the net zero target achievement, including the frequency of its reporting.
Equity
Net zero targets ought to be accompanied by an explanation of why the target represents a fair or equitable contribution to limit global warming. Such statements refer to equity considerations on the entity’s fair share of global emissions and/or equity considerations among different groups in society.
Accountability
Net zero target design allows for holding the political leadership or corporate executive accountable for delivering progress towards target achievement. Such accountability can be achieved through various mechanisms, institutions, or incentives.
For more information, see our methodology
Planning to use external offset credits
Yes
No
Not specified
Separate targets for emission reductions and removals
Yes
No
Conditions on use of offset credits
No conditions
High environmental integrity
Avoid social harm
Avoid biodiversity harm
Excludes avoided emissions
Excludes emissions reductions
Excludes biological sequestration
Maximum % of emissions that can be offset
Other conditions
Plans for carbon removal (CDR)
Not specified
No plans
Yes (unspecified)
Nature-based removals
CCS-based removals
Both nature and CCS-based
Offsets (credits) and sinks
Offset credits
Offsetting claims to compensate an entity’s own GHG emissions by accounting for GHG emission reductions (including through avoided emissions) or GHG removals achieved external to the actor. This way, the entity claims a reduced net contribution to global emissions through offset credits. Offsetting is typically arranged through a marketplace for carbon credits or other exchange mechanisms.
Carbon dioxide removal (CDR)
CDR, also known as negative emissions, represents any action that removes carbon dioxide from the atmosphere. CDR comprises a range of nature-based solutions, for example afforestation, or reforestation, and technological solutions, for example direct air carbon carbon and storage (DACCS).
Separate emissions reduction and removal targets
Some entities differentiate their emission reductions targets from their removals targets. Separate targets for emission reductions and removals improves transparency, making it easier to track progress and compare the level of target ambition.
The achievement of the Paris Agreement temperature goals requires both rapid emission reductions and the removal of residual emissions. Separating emissions reduction and removal targets recognises that the outcomes of removal activities are generally not equivalent to the outcome of emission reduction activities.
For more information, see our methodology
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Entry last updated 04 Sep 2024. Does this data need updating?
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