UK regulator accuses HSBC of ‘greenwashing’ over its misleading ads

London

The UK regulator accused the HSBC bank of “greenwashing” after it ran advertisements, claiming to be working on tackling climate change.

The regulator said that the bank deliberately omitted its involvement in fossil fuel projects and links to deforestation.

Greenwashing is a form of marketing gimmick adopted by companies to project themselves as eco-friendly or sustainable when this is not the case. It is done deliberately to mislead people into believing that they are helping the planet with their green choices.

On Wednesday, UK’s Advertising Standards Authority said that the British multination firm’s ran misleading promotions, endorsing that the lender has been taking steps to achieve net zero greenhouse gas emissions.

One of the posters displayed an image showing waves crashing on a shore with text that said, "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 ASA upheld that the ads “omitted significant information about HSBC's contribution to carbon dioxide and greenhouse gas emissions."

“Customers... would not expect that HSBC, in making unqualified claims about its environmentally beneficial work, would also be simultaneously involved in the financing of businesses which made significant contributions to carbon dioxide and other greenhouse gas emissions,” the ASA said.

Responding to the order, an HSBC spokesperson told the BBC, “The financial sector has a responsibility to communicate its role in the low carbon transition to raise public awareness and engage its customers.”

(With inputs from agencies)

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