The recent report that HSBC had weakened its climate commitment by 20 years - and blamed SBTi and carbon offsets for doing so - made my blood boil😡. That's because this isn't actually about the integrity of carbon credits, or the integrity of the SBTi. It is about the integrity of corporate "leaders" who, in the middle of a crisis, will use any excuse they can to delay taking action. That's short-term self interest plain and simple. Every company in the world has all of the information, money and permission they need to take action, including offsetting 100% of their residual emissions as part of a holistic decarbonisation strategy. They just don't want to pay for it. It's all an excuse. But there are no excuses... 👉Don't like the SBTi position? No problem, do the right thing anyway and offset your residual emissions. 👉Don't like $1 energy offsets? No problem, buy $5 REDD+ ones. 👉Don't like $5 REDD+ offsets? No problem, buy $50 removals. 👉Don't like $50 removals? No problem, buy $90 EU allowances. 👉Don't like certificates at all? No problem, pay $160/tn - the social cost of carbon - into the global Loss and Damages Fund. After all, you caused it, you fix it. You see, there are PLENTY of things to do that don't involve kicking the can for two decades when 2024 was already at 1.7 degrees. This is about having the integrity to actually do those things. I guess the Australian politician Jack Lang was right all along when he said in the 1930s: "In the race of life, always back self-interest. At least you know it's trying".
Zsolt Lengyel
7mo
Fully share your anger triggered by the HSBC backsliding , Rich Gilmore ! Let me add: “People who say it cannot be done should not interrupt those who are doing it.” – George Bernard Shaw Incumbents can always rationalize their inaction. The truth is, change is hard, especially to those on the top / core of the existing disfunctional systems . The silver lining : isn’t it better to face and calling out those blatantly wrong than fighting the uphill struggle against those who are complacent / pretentious with their incremental approaches?
Carbon Paradox
7mo
A disturbing example of the Ideologies Paradox: Pragmatic steps to combat climate change right now are being decried as “too little!” by green campaigners and as “too much!” by right-wing climate deniers. Paradoxically, those two opposing ideologies form an unholy alliance, allowing companies like HSBC to quietly abandon their targets. https://carbonparadox.org/19-ideologies-paradox/
Gideon Richards
7mo
Great reaction that makes sense. There are always alternatives if you have the right ambition and drive. There are other more local and less credited routes if you just also want to do the right thing. If you can demonstrate the integrity of what you are doing then does it always need to be through one of the other routes? It may not have the same recognition in what has already become a questioned carbon offsetting environment but can also deliver the same results but it needs to be well thought through, credible, documented and real. Many really fabulous positive change comes from just doing the right thing without making a song and dance about it, especially for smaller organisations on an ESG journey. Obviously for the regulated assured space that is more difficult.
Nick Barnett
7mo
Excellent comment. Somewhere, there's a formula to create a meritocracy among the top 5 or 10% of GHG emitting companies, in which they can brag about their achievements in reducing emissions rather than showboating just their efforts. dMRV, good data, transparency, blockchain all have their essential place in this formula.
Roger Cohen
7mo
Well said Rich Gilmore. This is a systems change issue. Instead of taking a leadership position against a backdrop of laggards, HSBC is joining the laggards. Driven by forgoing a short term increase in cost of doing business instead of focusing on long term payback.
Managing Director @ GreenEnergy GPO | Expert on Global Voluntary Carbon & Renewable Energy Markets
7moCompletely agree—this isn’t about the tools available; it’s about the will to act. Businesses have a menu of credible solutions at their disposal, from high-quality offsets to direct decarbonization strategies. Using uncertainty or evolving frameworks as an excuse for inaction only undermines long-term business resilience. The reality is that companies willing to lead on climate action will find a way, while those looking for a way out will always find an excuse. Just because SBTi doesn’t recognize these contributions doesn’t mean companies still can’t do the right thing anyways.