LONDON, April 22, 2026, 15:16 BST
- Britain’s Financial Reporting Council has been pressed by investors to take a look at HSBC’s 2025 accounts and audit.
- Questions came up over whether HSBC and its auditor, PwC, accurately captured climate risks in the bank’s financial statements.
- HSBC faces the challenge just ahead of its first-quarter earnings report on May 5, followed by the annual meeting scheduled for May 8.
Institutional investors are urging Britain’s Financial Reporting Council to scrutinize HSBC Holdings Plc’s 2025 accounts and audit, turning up the heat on Europe’s biggest bank regarding its climate risk reporting. The FRC, which oversees UK company reporting, audits, and accounting standards, has been asked to act. Reuters
Timing is key here. HSBC’s first-quarter results land May 5, with shareholders gathering once more for the annual general meeting on May 8. What used to be a sustainability issue—climate accounting—has tightened into a capital story: are losses ahead, asset valuations, and loan exposures showing up where they should in the books? HSBC
Investors say they can’t see how PwC reviewed the bank’s climate stance, according to a letter sent to HSBC, the Prudential Regulation Authority, and the FRC. Among the signatories: Sarasin & Partners, NEST, Merseyside Pension Fund, Lombard Odier Investment Management, and Edentree Investment Management. Reuters
HSBC’s latest financial filings suggest the lender doesn’t see any significant climate-related impact in the near or medium term, investors pointed out, though the reports do flag ongoing uncertainty. The investors warned this stance could be “excessively optimistic,” citing threats from floods, wildfires, and shifting regulations. Transition risks—costs or losses tied to economies moving away from high-carbon activities—remain a concern. MarketScreener
Investors are pressing HSBC to release a sensitivity analysis—essentially, a forecast of how tougher climate scenarios might hit its loan book, asset prices, or capital. The letter warns that missing likely losses or liabilities “could put investor capital at risk.” Reuters
HSBC stayed silent on a Reuters request for comment. PwC said no. The FRC acknowledged the letter landed but offered nothing beyond that. Reuters
This challenge follows HSBC’s decision to ease off on some climate goals. Back in November, the bank shifted its near-term financed-emissions targets for high-emitting sectors to a range format instead of fixed figures, though its overarching net zero aim for 2050 remains unchanged. Reuters
HSBC previously delayed its goal to hit net-zero emissions in its direct operations, travel, and supply chain, citing sluggish movement in the broader economy. At the time, Julian Wentzel, the bank’s chief sustainability officer, described to Reuters a shift toward a “more measured approach” on oil and gas lending. Reuters
Chief Executive Georges Elhedery is steering the bank through a significant overhaul. HSBC posted a 2025 pretax profit of $29.9 billion, down 7% after $4.9 billion in one-off charges. Still, the group bumped up its return on tangible equity goal, now targeting at least 17% through 2028. Return on tangible equity, a key metric for banking profitability, remains in sharp focus. Reuters
It’s not just HSBC facing questions over climate policy. Last year, HSBC exited the Net-Zero Banking Alliance—joining the likes of JPMorgan, Citi, and Morgan Stanley—as major banks reconsidered climate commitments, responding to both commercial realities and political headwinds. Reuters
Another shake-up is underway in HSBC’s markets division. The bank—counted among the biggest in bullion trading—is bringing on JPMorgan’s James Willis to steer global precious metals sales, Reuters reported Tuesday. Just recently, HSBC also tapped Mark Augustynak from ICBC Standard Bank to oversee global metals trading. Reuters
HSBC faces a potential headache if the FRC review request morphs into wider questions—are banks disclosing enough about climate losses before they hit credit books? On the flip side, the regulator could easily choose not to pursue the matter, leaving HSBC’s accounts untouched.
Shareholders now have another topic to press ahead of earnings and the AGM. HSBC’s investor page listed its London shares at 1,350.60 pence—off by 4 pence—with the quote delayed and the latest update posted at 14:13 GMT on Wednesday. HSBC
