# Financial risks of climate change overplayed, senior HSBC banker says
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-20
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: HSBC Banker Criticises Climate Change Warnings
Meta Description: Senior HSBC banker disputes warnings of climate change risks, sparking criticism from activists. Bank clarifies his views do not reflect HSBC's stance.
URL: https://financedigest.com/financial-risks-of-climate-change-overplayed-senior-hsbc-banker-sayshtml

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By Lawrence White, Sinead Cruise and Simon Jessop

LONDON (Reuters) – Central bank policymakers and other global authorities are exaggerating the financial risks of climate change, a senior HSBC banker in charge of sustainable investments said in remarks that drew criticism from climate activists.

The bank said his views did not reflect those of HSBC as a whole.

Unsubstantiated, shrill, partisan, self-serving, apocalyptic warnings are ALWAYS wrong,” Stuart Kirk, HSBC’s head of responsible investing, wrote on a slide accompanying his presentation at a conference in London on Thursday alongside quotations from bodies such as the United Nations and [Bank of England warning of the risks](https://www.financedigest.com/inflation-trumps-financial-risks-as-central-bank-tightening-set-to-continue.html "Inflation trumps financial risks as central bank tightening set to continue").

Kirk said that such warnings meant his team and HSBC in general are spending a disproportionate amount of time dealing with [climate risk](https://www.financedigest.com/institutional-investors-back-shell-board-lawsuit-over-climate-risk.html "Institutional investors back Shell board lawsuit over climate risk"), as opposed to other challenges.

We’ve got inflation coming down the pipes and I’m being told to spend time and time again looking at something that’s going to happen in 20 or 30 years, the proportionality is completely out of whack,” he told the conference hosted by the Financial Times, which [posted online a video recording](https://www.financedigest.com/equinor-posts-record-profit-boosted-by-soaring-gas.html "Equinor posts record profit boosted by soaring gas") of the event.

Nicolas Moreau, Chief [Executive of HSBC Asset Management](https://www.financedigest.com/french-watchdog-fines-h2o-asset-management-executives-over-tennor-investments.html "French watchdog fines H2O Asset Management, executives over Tennor investments"), told Reuters via a spokesperson that Kirk’s remarks did not represent the company’s views.

HSBC regards climate [change as one of the most serious emergencies facing](https://www.financedigest.com/talk-to-me-the-changing-face-of-customer-communications.html "TALK TO ME :THE CHANGING FACE OF CUSTOMER COMMUNICATIONS") the planet,” Moreau said in an email sent via a spokesperson.

HSBC Asset [Management](https://www.financedigest.com/britains-post-brexit-asset-management-revamp-eyes-liquidity-tokenisation.html "Britain’s post-Brexit asset management revamp eyes liquidity, tokenisation") oversees some $640 billion in assets, according to the company website.

Kirk did not respond to a request for comment sent via LinkedIn.

Kirk’s comments drew criticism from activist groups that have campaigned for HSBC and other [financial firms](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") to reduce their funding of the fossil fuels industry and toughen their climate pledges.

This should raise red flags to any clients of HSBC that care about net-zero,” Jeanne Martin, campaign [manager at responsible investment](https://www.financedigest.com/mg-appoints-former-head-of-axa-investment-managers-andrea-rossi-as-new-ceo.html "M&G appoints former head of AXA Investment Managers Andrea Rossi as new CEO") NGO Share Action, tweeted.

Beau O’Sullivan, senior campaigner on the Bank on our Future campaign, called the comments “regressive and grossly flawed”, adding climate [change posed a material risk to financial](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") assets.

[(Reporting by Lawrence White](https://www.financedigest.com/white-bullet-releases-ad-funded-piracy-report-for-world-intellectual-property-organisation-wipo.html "White Bullet releases Ad Funded Piracy Report for World Intellectual Property Organisation (WIPO)"), Sinead Cruise and Simon Jessop; editing by Barbara Lewis)


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