The report, ‘Who pays the price? The cost of HSBC’s climate damages’, highlights how HSBC funnelled £153bn into high-emission industries, enabling 357 million tonnes of CO₂e emissions globally while financing the expansion of oil, gas, and agribusiness operations – almost matching the UK’s entire 2024 emissions (371 million tonnes). These emissions directly contribute to climate disasters such as droughts, floods, and food insecurity, with devastating impacts on women and girls and the communities they live in. Yet shockingly, analysis from the report reveals that HSBC hasn’t disclosed up to 80%1 of its emissions, masking the true scale of its environmental impact, particularly on women and girls in countries where ActionAid works. 

Following concerning findings from its report, ActionAid UK 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. The report draws on powerful firsthand accounts from communities in Bangladesh, Tanzania, and Brazil, where ActionAid works, who are already grappling with the impacts of climate change and land and resource exploitation.  Of the £153bn 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. Fishermen have reported a sharp decline in fish stocks. Years of industrial waste and oil spills have left the Laukhati River in coastal Bangladesh lifeless, cutting off a vital source of income and forcing many to abandon fishing altogether. One fisherman said, "The river used to be full of fish; now, all we find are dead bodies floating on the surface.” 

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.” Another woman added, “My children are always coughing. They struggle to breathe. A strange new allergy has appeared on their skin, and we don’t even know what it is. The doctors can’t give us a proper answer.” 

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. After years of urging the bank to change course, ActionAid UK has chosen to move away from HSBC and close most of its accounts, feeling it had no choice but to act. 

Background: 

ActionAid’s report calls on HSBC to:  

• Cease funding immediately to companies expanding fossil fuel operations or industrial agriculture linked to deforestation.  

• Ensure financial relationships uphold the right to Free, Prior and Informed Consent (FPIC), ensure gender due diligence, and support access to remedy for affected communities.  

• Fully disclose financed emissions, including those from fossil fuels and industrial agriculture. Reduce emissions including via financing to their clients and include agriculture in net-zero plans. 

• Publish Paris-aligned transition plans and require banks’ clients to also publish transition plans. 

Our report urges the UK Government to: 

• Introduce a mandatory, gender-responsive Business, Human Rights, and Environment Act requiring banks to conduct due diligence on the environmental harm and human rights abuses of their emissions. Communities facing the sharp end of this damage should have legal recourse to justice and compensation. 

• Make polluters pay through taxes or fines to fund climate recovery and support community-led solutions, especially by women. This offers a fair way to uphold UK commitments amid potential ODA cuts to the UK’s climate commitments. 

• Mandate banks to disclose full financed emissions and publish credible transition plans aligned with the 1.5°C target, with clear timelines to end support for fossil fuels and deforestation. 

Notes to editor 

Contact the ActionAid press office on uk.media@actionaid.org or on 07753 973 486.  

Hannah Bond, along with spokespeople from ActionAid UK, ActionAid Bangladesh and ActionAid Brazil, are available for interview on request as well as further testimonies from Tanzania and Brazil. Please contact the press office to arrange. 

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 CO₂ 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.