HSBC Climate Data Sparks Investor Call for Regulatory Review (1)

A group of investors managing $400 billion is calling for HSBC Holdings Plc to be subjected to a regulatory review, citing concerns the UK bank may be misleading shareholders and creditors about its exposure to near-term climate risks.

HSBC’s assessment looks “excessively optimistic,” investment managers including Sarasin & Partners, Lombard Odier Investment Management and Edentree Investment Management said in a letter to the UK Financial Reporting Council.

“At a time of rising climate instability and accelerating decarbonization in key industries, a failure to account for probable losses or liabilities could put investor capital at risk,” they said.

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