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ASA Ruling on HSBC UK Bank plc - decision

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In October 2021, two posters for HSBC bank were seen on bus stops in Bristol and London. The first featured an aerial image of waves crashing on a shore with text that stated "Climate change doesn’t do borders. Neither do rising sea levels. That’s why HSBC is aiming to provide up to $1 trillion in financing and investment globally to help our clients transition to net zero”. The second poster featured an image of tree growth rings with text that stated "Climate changes doesn’t do borders. So in the UK, we’re helping to plant 2 million trees which will lock in 1.25 million tonnes of carbon over their lifetime".
The Advertising Standards Authority (“ASA”) received 45 complaints, including from Adfree Cities, who challenged whether the ads were misleading, because they omitted significant information about HSBC’s contribution to carbon dioxide and greenhouse gas emissions.
By ruling of October 19, 2022, the ASA upheld the complaints.
The CAP Code required that the basis of environmental claims be clear and that unqualified claims could mislead if they omit significant information.
The ASA held that consumers would understand the ads to mean that HSBC was making, and intended to make, a positive overall environmental contribution as a company. As part of that contribution, consumers would understand that HSBC was committed to ensuring its business and lending model would help support businesses’ transition to models that supported net zero targets. Additionally, they would understand that HSBC were undertaking an environmentally beneficial activity by planting trees which would make a meaningful contribution towards the sequestration of greenhouse gases in the atmosphere.
Whilst the ads appeared in the run up to COP26, that did not mean consumers would understand the intricacies of transitioning to net zero. HSBC’s current financed emissions – emissions related to the customers it financed – stood at the equivalent of around 65.3 million tonnes of carbon dioxide per year for oil and gas alone. That figure was likely to be much higher once other carbon-intensive industries such as power and utilities, construction, transport, and coal mining had been analysed and included. HSBC also intended to continue funding thermal coal mining and power production – a type of fuel that emitted high levels of carbon dioxide and other greenhouse gasses – to some degree until 2040 (or 2030 in the OECD).
Some level of financing would be required for natural gas and oil production to 2050. However, that meant, despite the initiatives highlighted in the ads, that HSBC was continuing to significantly finance investments in businesses and industries that emitted notable levels of carbon dioxide and other greenhouse gasses. Consumers would not know that was the case, and it was therefore material information that was likely to affect consumers’ understanding of the ads’ overall message, and so should have been made clear in the ads. The ads omitted this material information and were therefore misleading.
The ASA ruled that the ads must not appear again in the form complained of. The ASA told HSBC to ensure that future marketing communications featuring environmental claims were adequately qualified and did not omit material information about its contribution to carbon dioxide and greenhouse gas emissions.

ASA Ruling on HSBC UK Bank plc

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

Financial actors and resources that are primarily directed towards climate change mitigation, adaptation and compensation.

An enterprise or financial institution that is usually majority-owned, backed or significantly controlled by nation-state governments.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Risks to the ecosystem health of the marine environment, including ocean warming, ocean acidification, and ocean deoxygenation, harming biodiversity, species health, ecosystem services, and coastal community livelihoods.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.