About S&P Global Commodity Insights

Powering the Markets

S&P Global Platts and IHS Markit ENR combine to become S&P Global Commodity Insights. S&P Global Commodity Insights brings together highly complementary capabilities to power the markets of the future.

Assessments & Benchmarks

We engage with market participants and evolve rigorous methodologies for assessments that reflect a commodity’s true value. Along with news and market commentary, our assessments help you make successful trading decisions.

Workflow Solutions

We partner with you to enhance workflows, increase efficiency and optimize business processes by leveraging AI-driven software and applications, integrated platforms and machine delivery.

Research & Insights

We develop deep, interconnected industry analysis and forecasts across the full energy and commodities value chain. Subscriptions to our market insights and analysis include access to subject matter experts.

Conferences & Advisory Solutions

We provide consulting services on current challenges such as renewables and energy transition, and host education sessions, webinars, and premier events like CERAWeek and Global Power Markets. 

Together we are helping companies like yours with highly relevant information, expert analysis, and workflow solutions you need to maintain your competitive edge.

Pressure builds on oil, gas funding as HSBC rolls out net-zero lending targets

HSBC laid out plans Feb. 22 to cut its lending to oil and gas clients based on their carbon emissions as the UK bank looks to align its loan portfolio with the International Energy Agency's landmark scenario for hitting net-zero by 2050.

Disclosing its "financed emissions" portfolio for the first time, HSBC said it is targeting a reduction of 34% in absolute emissions from oil and gas companies it lends to by 2030. In the power and utility sectors, the bank said it is also targeting a 75% reduction in emissions intensity by 2030 from its clients, as measured by CO2 equivalent/TWh from a 2019 baseline.

The moves mark a further tightening of institutional funding for fossil fuel projects as more banks look to align their lending with Paris Agreement climate goals to curb carbon emissions.

More than 100 banks worldwide representing 44% of global banking assets have already committed to aligning their lending and investment portfolios with net-zero emissions by 2050, according to the UN's Net-Zero Banking Alliance.

It also comes a week after campaign group ShareAction estimated that Europe's biggest banks have lent some $400 billion to companies expanding oil & gas production since 2016. The group estimated that HSBC was the biggest lender to the sector, with some $8.66 billion directed to oil and gas in 2021.

HSBC said it is scaling up its investment and financing for renewable and other low emission sources of electricity, in addition to supporting the decarbonization of high-carbon sectors such as aviation.

"Partnering and engaging with customers in the transition to net-zero is at the heart of our approach," HSBC's CEO Noel Quinn said in a statement. "We are supporting clients to evolve their business models and replace old technology with new, greener alternatives. We will request and review science-based client transition plans and use them as the basis for further engagement."

Pressure on climate goals, exposure

For oil and gas companies, HSBC said the new loan target is equal to the percent reduction that the IEA indicates in its net-zero scenario for global sector emissions to 2030 from a 2019 baseline. The bank said its on-balance sheet financed emissions for oil and gas in 2019 were 35.8 million mt of CO2 equivalent.

Published in May 2021, the IEA's Net Zero Emissions Scenario lays out a pathway to limit global warming to 1.5 degrees Celsius by 2050 and assumes a halt to spending on all new oil and gas projects.

Last year, the Bank of England introduced climate "stress test" targets for large banks and insurers to evaluate their planned approaches to managing climate risk.

"Investors, at least for the last three years have been looking at how they look at net-zero across their investment portfolio," Doug Johnston, partner for climate change and sustainability at EY, told the International Energy Week event on Feb. 22. "I think the big change is the attitudes of the banks ... you could see a point over the next five years, where traditional oil and gas assets will just not be able to get the funding that they need to continue to operate."


ESG ranking

While a shrinking oil market under the IEA's net-zero scenarios would change the supply landscape dramatically, it would not remove the need for continued investment in upstream projects.

If investments were to continue in producing oil and gas fields and those already under development, global upstream investment would still average about $350 billion each year to 2030 and then fall to $170 billion each year to 2050, according to the IEA's net-zero energy scenario.

HSBC said its new lending targets for oil and gas focus on upstream companies, and integrated or diversified energy companies, assessing their portfolios covering Scope 1, 2 and 3 greenhouse gas emissions of financed counterparties.

In the power and utility sector, HSBC said it believes that power generation is where the majority of sector emissions occur through the use of fossil fuels as a source of energy. The bank said the adoption of an emissions intensity metric rather than absolute emissions for power and utilities reflects the need to reduce global greenhouse gas emissions from power generation while also meeting growing electricity demand.

Noting that HSBC has already announced plans to achieve net-zero emissions in its own operations and supply chain by 2030 and in its financed emissions by 2050, S&P Global Ratings said Feb. 2 that environmental, social and governance factors have "no material influence on our credit rating analysis of HSBC."

In January, S&P Global Ratings gave HSBC an ESG Evaluation score of 76 out of 100 "reflecting HSBC's increasing level of development and integration of ESG considerations into its operations."

Connect Now

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Other Articles

Infographic: Insufficient lithium supply could decelerate energy transition

Lithium is a key raw material for electric vehicles and energy storage systems, but the lack of investment in new supply in previous years might generate a structural deficit throughout this decade, data from the expected supply versus expected demand (both until 2030) demonstrates.

Steel versus plastics: The race to sustainability

S&P Global Platts looks at the supply, demand, and price drivers of today’s growing recycled plastics market, as well as the opportunities and challenges of the plastics sector in a circular economy.

Oil Security Sentinel™

An interactive editorial project exploring the changing relationship between geopolitical risk and the price of crude. This analysis shows how diversity of supply, higher levels of global spare capacity and the expansion of strategic petroleum reserves have helped to insulate markets from the risk of supply disruptions in the Middle East and beyond.

Infographic: Russian invasion of Ukraine puts spotlight on security of oil, gas and commodities flows

Conflict in Ukraine following Russian troops launching attacks across international borders on Feb. 24, has already had a major impact on prices of key commodities from oil and gas through to steel and grains. Europe is heavily reliant on gas and Urals crude via the Druzhba pipeline to refiners across the region.

Reckoning with renewables: As carbon certifiers tighten rules, renewable energy may re-evaluate options

Amid a growing collection of corporate net-zero claims and growing evidence of the devastating consequences of climate change, there has been increasing focus on voluntary carbon credit projects that claim to either reduce, avoid or remove greenhouse gas emissions.

Listen: Hydrogen and the path towards decarbonization

Hydrogen has received extraordinary policy support over the past year, with nations worldwide racing to publish national hydrogen strategies. These roadmaps provide a decade-long pathway to developing wide-scale utilization of low-carbon hydrogen as a means to achieving deep decarbonization in otherwise problematic sectors.

ANZ bank takes minority stake in energy transition focused advisory firm Pollination

Australian banking and financial services company ANZ will invest US$50 million for a minority equity stake in Pollination, an Australia-based investment and advisory firm focused on climate change, they said in a joint statement Feb. 16, adding that the partnership aims to drive the transition to net-zero and support biodiversity.

Banks seeking to finalize framework for steel decarbonization in Q2

A group of banks including ING, Citi and Goldman Sachs, plan to finalize a framework for lending to support the global steel industry's decarbonization efforts during the second quarter, following further dialogue with stakeholders including steel companies and industry groups.

ExxonMobil urges financiers to push for carbo pricing, low-carbon incentive policies

The vice president of ExxonMobil's new low-emission technology business called on financiers to join the energy industry in pushing for policies that incentivize investments in low carbon developments, especially policies that would introduce carbon pricing.

Breaking barriers to accelerate energy transition

Our new special report looks at how energy and commodity markets are responding to the decarbonization challenge, from oil to marine fuels to battery metals and petrochemicals.

Atlas of Energy Transition™

Navigating a pathway to a low-carbon global economy requires a new plan. The S&P Global Platts Atlas of Energy Transition™, produced in collaboration with S&P Global Market Intelligence, is your map to the sustainable commodity markets of the future.

Financial Sector Case Studies

By working closely with our customers for more than a century, S&P Global Platts has become one of the most respected sources of relevant, independent pricing information, insights and analysis in the global energy and commodity markets. Download the brochure and see examples of our work with financial institutions around the world.

Watch: The Role of Energy Markets in Investor Commitments to Decarbonization

Lauren Smart, Managing Director and Global Head of ESG Commercial for S&P Global Platts Market Intelligence sat down with Gordon Bennett, Managing Director of Utility Markets at the Intercontinental Exchange to talk about ESG the energy transition, hedging, decarbonization, and much more.

Understanding Voluntary Carbon Markets

Trade in voluntary carbon credits is rising as companies look to offset their emissions. Silvia Favasuli and Vandana Sebastian explain how the market works, key players and pricing principles.

Factbox: As SWIFT ban hits banks, spotlight turns on how Russia sells its oil

Concern is growing over the impact that a ban announced Feb. 26 on Russian banks using the SWIFT international payment system could have on the trading of Urals crude oil.

Singapore announces larger-than-expected carbon tax to fund long-term decarbonization

Singapore will raise its carbon tax to S$25/mt ($18.60) of CO2 equivalent in 2024 and 2025, from S$5/mtCO2e ($3.7), to finance its decarbonization efforts, create a regional carbon marketplace and bring forward its net zero emissions deadline, the government said Feb. 18.