HSBC encountered significant shareholder dissent at its annual general meeting (AGM) on Friday, with nearly 8% of investor votes opposing the election of new chairman Brendan Nelson. This level of opposition is unusual for a new chair, who typically expects near-unanimous support in their inaugural year.
Unusually High Dissent
Just over 8% of votes also went against the re-election of James Forese as an independent non-executive director and chair of the group risk committee. In contrast, last year's AGM saw former chairman Mark Tucker receive less than 2% opposition, while Forese was backed by almost 100% of votes. Although neither resolution failed or triggered a substantial rebellion, the dissenting votes are widely interpreted as a protest against the board's direction.
Climate Activist Criticism
The pushback follows criticism from activists over HSBC's recent decisions to soften its climate targets. The bank has weakened its goals for reducing emissions linked to its lending to polluting industries. ShareAction, a responsible investment campaign group, had recommended voting against Nelson and Forese ahead of the AGM. During the meeting, a representative read a letter signed by 70 climate scientists, calling the bank's weaker climate ambitions irresponsible and dangerous.
ShareAction's Response
Jeanne Martin, head of the banking programme at ShareAction, stated: "Shareholders have sent a strong message of dissent at HSBC's decision to weaken its approach to coal, oil and gas, undermining long-term financial resilience and feeding into climate impacts people are already facing, from flooded homes to heat stress and rising costs affecting the UK economy. The board must take this vote seriously." Nelson agreed to meet with ShareAction and investors to discuss the issue, a move welcomed by the group. However, Martin warned that rebuilding confidence would require "decisive action to halt further climate backsliding."
HSBC's Climate Target Changes
Last May, HSBC delayed its ultimate net-zero emissions target by 20 years, moving it from 2030 to 2050, citing a slower pace of transition in the real economy and global decarbonisation. Later in the year, it further softened near-term goals by setting targets for reducing 2030 financed emissions for polluting sectors like oil and gas as a range rather than a single figure. HSBC also became the first British bank to leave the banking sector's global climate target alliance, following several major US lenders. These changes reflect a wider trend of lenders retreating from green commitments amid a breakdown in political consensus on climate action. Other UK banks, including Barclays and NatWest, have faced similar activist criticism at recent AGMs. HSBC has been contacted for comment.
