HSBC has allegedly pumped billions of dollars into fossil fuels, deforestation and air travel and labelled it "sustainable finance".

An investigation by the Bureau of Investigative Journalism (BIJ) and the BBC has suggested that more than £2bn of deals that the bank counts towards its sustainability goals were contributing to climate change.

The investigation cites sustainabilitylinked bond (SLB) as a key issue. SLBs are a "green type of debt", for firms to raise money to fund sustainable activities.

Campaigners claimed targets for SLBs are often "remarkably weak" and the penalties for failing to meet them "paltry", allowing firms to give an "appearance of environmental concern." HSBC told the BIJ: "Like many other financial institutions, HSBC is playing an important role in the nascent SLB market."

(c) 2022 City A.M., source Newspaper