New report by ActionAid exposes devastating human cost of HSBC’s climate damage

A damning new report from ActionAid and research group Profundo reveals that HSBC’s financing of fossil fuels and industrial agriculture over three years exposed the planet to a shocking 357 million tonnes of carbon emissions – roughly the equivalent of 10 African countries emissions for a whole year1. These emissions contributed to climate disasters such as droughts, floods, and food insecurity, and led to an estimated £128 billion worth of damage to the economy. 

The findings expose a stark disconnect between HSBC’s alleged green promises and its actions. While the bank talks sustainability, its investments are fuelling environmental destruction and social harm. The report, ‘Who pays the price? The cost of HSBC’s climate damages’, also states shockingly that HSBC hasn’t disclosed up to 80% of its emissions, masking the true scale of its environmental impact. 

The report draws on powerful firsthand accounts from communities in Bangladesh, Tanzania, and Brazil, where ActionAid works. From water shortages in Bangladesh and deforestation in Brazil to the displacement and inadequate compensation of communities in Tanzania, HSBC-linked projects are hitting communities hard. 

Of the £153 billion HSBC poured into polluting industries, £77 billion ($97B) was linked to companies operating in communities whose projects have been associated with documented environmental and social harms. 

In Patuakhali, coastal Bangladesh, communities living near the HSBC-financed United Payra Power oil-fired power plant are experiencing the fallout of toxic pollution. The plant burns heavy fuel oil, releasing black dust and industrial waste into the air and water. Water sources, including a local river, have been contaminated, collapsing fish stocks and destroying farmland, according to community members. A street vendor told ActionAid: 

"Water is life, but here, it has become poison." 

Water scarcity is not just an environmental crisis; it’s a gender justice issue. Women and girls, traditionally responsible for managing household water resources, are bearing the brunt of depleting local water supplies. Forced to travel greater distances for water, they have less time for school, work, and personal wellbeing. Often, they make these journeys alone and through isolated areas increasing their exposure to gender-based violence. 

Restricted access to clean water also undermines menstrual hygiene and reproductive health, pushing women to resort to unsafe practices that escalate the risk of urinary tract infections and gynaecological problems. For adolescent girls, the lack of sanitary facilities means missing school during menstruation, deepening long-term educational and economic disparities.  

Health issues like chronic coughing, skin conditions, and anxiety are also widespread among families living close to the plant. A woman shared that every morning her house is caked in a layer of black dust: 

"We breathe this in every day. Our children have constant coughs, but where can we go? This is our home.”  

In response to the report’s findings, Zahra Hdidou, ActionAid UK’s Senior Resilience and Climate Advisor, said: 

“It’s ludicrous that at a time when the climate crisis is wreaking devastating havoc on people's lives, particularly in the Global South, banks are spending billions of pounds making the situation even worse. And what’s even more shocking is that they’re being allowed to get away with it. 

“We are calling on banks across the world to immediately stop project and corporate financing for all new deforestation, coal and fossil fuel expansion activities, and rapidly phase out financing of all other fossil fuel and harmful industrial agriculture activities. People’s lives are on the line.” 

Following concerning findings from its report, ActionAid is moving the majority of its accounts away from HSBC after years of raising the alarm over its climate and human rights record alongside recent delays to the bank’s net zero plans. 

Notes to editor

Methodology 

To determine the total figure, we used the Social Cost of Carbon (SCC) model, which was developed by economists like William Nordhaus (Yale University) and Nicholas Stern (Stern Review on Climate Change) in the 1980s and 1990s. This model estimates the long-term economic, environmental, and social damage caused by carbon emissions. 

To reach the £128 billion in climate damage, Profundo followed these steps: 

• Measured HSBC’s impact – The bank’s financing of fossil fuels and industrial agriculture from 2021 to 2023 contributed to 356.8 million tons of CO₂e emissions (carbon dioxide equivalent emissions)
• Assigned a cost per ton – Each ton of CO₂ was valued at £358.8, based on the Social Cost of Carbon (SCC) model
• Calculating the total damage by multiplying HSBC’s emissions by the SCC value gave a total of £128 billion, representing the wider damage caused by its financed emissions. This figure reflects the broader harms linked to climate shocks such as droughts, fires, heatwaves, and storms. These are likely to cause long-term economic harm because of their impact on health, savings, livelihoods, agriculture, and social cohesion. 

The report’s methodology uses a financial emissions accounting approach to assess HSBC’s role in global emissions. It incorporates: 

• Data from Banking on Climate Chaos (2023), Investing in Climate Chaos (2024), and Forests & Finance.
• HSBC’s financial records from Refinitiv and Bloomberg.
• Standardised calculations from the Partnership for Carbon Accounting Financials (PCAF) to estimate financed emissions. 

The methodology assigns responsibility to HSBC based on its financial contributions to fossil fuel and forest-risk companies: 

• Loans and investments: HSBC’s share of a company’s emissions is based on its proportion of total financial support.
• Underwriting services: HSBC’s role in issuing bonds and shares is weighted at 33%, as these activities have a smaller long-term financial impact. 

Since direct emissions data isn't always available, the report fills in the gaps using industry benchmarks and historical records. This method provides a clearer, more accurate picture of HSBC’s financial impact on emissions, ensuring that the analysis is as evidence-based as possible 

The report fills these gaps using industry benchmarks, historical data, and third-party sources like Refinitiv, Bloomberg, and Forests & Finance. It follows a standardised accounting method (PCAF) to ensure consistency, adjusting for different industries and regions. 

We calculated the emissions of 10 African countries by looking at the data from 2023 here. 

About ActionAid    

ActionAid is a global federation working for a world free from poverty and injustice. We want to see a just, fair and sustainable world, in which everybody enjoys the right to a life of dignity, and freedom from poverty and oppression.  We work to achieve social justice and gender equality, and to eradicate poverty. 

About Profundo 
Profundo provides action-oriented research, advice, and capacity building for civil society and public organisations.