An executive at U.K.-based HSBC left the multinational bank following controversy over his criticism of the premise that climate change poses substantial risks to investors.
Stuart Kirk, who was head of global responsible investing at the bank’s asset management division, announced his resignation Thursday, saying with a touch of irony that his relationship with his now-former employer had become “unsustainable.” HSBC opened up an investigation and suspended Kirk for comments he made during a finance forum in May accusing policymakers and central banks of drastically overstating the risks that climate change poses to the financial sector.
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“Investing is hard. So is saving our planet. Opinions on both differ,” Kirk wrote in a post on his LinkedIn page announcing his resignation. He further called for “open and honest debate” on issues of climate change and finance.
“If companies believe in diversity and speaking up, they need to walk the talk. A cancel culture destroys wealth and progress,” he said.
The split between Kirk and HSBC began with a speech he delivered at a summit titled “Moral Money” in which he said those pushing stricter sustainable financial regulations and environmental, social, and governance investment principles are hyperbolizing the risks of climate change to investments.
He also argued that economies can do well to adapt to climate change and that adaptation is preferable to regulating nongreen industries out of existence.
“Who cares if Miami is six meters underwater in 100 years?” Kirk said in his presentation. “Amsterdam has been six meters underwater for ages, and that’s a really nice place. We will cope with it.”
Nicolas Moreau, chief executive of HSBC Asset Management, said at the time that Kirk’s views “do not reflect the views of HSBC Asset Management nor HSBC Group in any way.”
Moreau also said HSBC is “committed to driving the transition to a sustainable global economy.” The bank intends to reduce greenhouse gas emissions associated with its investment portfolio to net-zero by 2050 at the latest.
Environmental, social, and governance and green regulations have come under increased pressure in the face of the war in Ukraine and related global energy crisis, which has many governments pushing for more investment in fossil fuels, especially natural gas, alongside investment in renewable energy sources.
Some of the world’s largest financial firms have also stepped back from a more aggressive environmental, social, and governance approach taken in years past.
The U.S. Securities and Exchange Commission, meanwhile, has been pushing ahead with new climate change-related proposals, including a new rule to require companies to disclose their climate-related risks, including greenhouse gas emissions tied to their operations.
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Republicans have pushed back on green financing principles, with several red states, most notably Texas and West Virginia, moving to restrict state investments in firms that restrict or decline to do business with fossil fuel companies.
