HSBC faces backlash after sidestepping questions on fossil fuel financing from people of color at Annual General Meeting

London, May 2 – HSBC’s Annual General Meeting (AGM) concluded amid audience backlash as Chairman Mark Tucker was forced to acknowledge calls from people of color after initially attempting to end the session without addressing their pre-registered questions. Among them was Avril de Torres from the Protect VIP network – an international coalition of environmental and human rights organizations advocating to end fossil gas expansion in the Verde Island Passage, a critical marine biodiversity hotspot in the Philippines. 

“I traveled all the way from the Philippines to ensure that an urgent concern that affects millions of Filipinos back home comes to your attention – that is, your complicity in the escalating threat to the Verde Island Passage or VIP,” De Torres said once finally allowed to speak.

HSBC remains one of Europe’s largest investors in fossil fuels, currently holding USD 81.9 million in bonds tied to San Miguel Corporation (SMC), a Philippine conglomerate at the center of controversial fossil gas and LNG developments in the VIP. For two years, Protect VIP has been engaging HSBC, demanding divestment from projects that put both the environment and frontline communities at risk.

“We first spoke about the VIP in your AGM two years ago – recognized as the ‘center of the center’ of marine shorefish biodiversity and dubbed the ‘Amazon of the Oceans’. It sustains the livelihoods of millions of Filipinos,” De Torres said.

“Yet it is threatened by massive fossil gas and liquefied natural gas (LNG) build-out, led by San Miguel Corporation – the same company responsible for chartering two tankers that spilled millions of liters of oil into the VIP. The poorest Filipinos, especially fisherfolk, continue to suffer the consequences to this day.”

De Torres also emphasized that SMC’s shift to liquefied natural gas (LNG) has led to a doubling of electricity generation tariffs for Filipino consumers, further deepening the economic strain on already vulnerable communities. This price hike is made possible through joint ventures with other major fossil fuel players—Meralco PowerGen Corporation (Meralco) and Aboitiz Power—for the acquisition of the LNG import terminal and two power plants: South Premiere Power Corporation (SPPC) and Excellent Energy Resources, Inc. (EERI) in Batangas. Both projects have drawn criticism from consumer advocacy groups for allegedly violating the Electric Power Industry Reform Act (EPIRA) power contracts that breach the allowable share of capacity drawn by Meralco’s distribution arm from power plants it also owns.

“This is the same company that is now charging us double for generation tariffs since it switched to LNG from indigenous gas”, she shared.

Despite these, HSBC continues to support San Miguel, contradicting their own energy policy which states the bank will not provide new financing or advisory services for oil and gas power plants operating in environmentally and socially critical areas. The same policy also commits to withdrawing from clients that pursue new thermal coal expansion.

“We have informed you about San Miguel’s ongoing coal expansion. One new coal plant began operations last year, and more units are expected to go online soon. And yet, instead of divesting from your fossil fuel investments, especially those that harm the VIP, you have nearly tripled your investments in San Miguel since our last engagement.” 

Other European financial institutions have begun to respond to these calls. DWS and Erste have already committed to divest from San Miguel, while BNP Paribas has stated that financing fossil gas in the VIP is not part of its strategy.

“There should be no reason you cannot make the same commitment”, De Torres urged.

Protect VIP called on the Bank to pursue actions to divest from and avoid future investments in gas and LNG projects in the VIP and their developers and to review existing investments in the Philippines for coal exposure to ensure they don’t cross the red line on coal expansion.

Chairman Tucker responded: 

“We’re not making commitments, we’re reviewing commitments. With regards to your second point about coal in the Philippines, I will ask the team to look at and review our position there. I am not aware of the position, but I will ask the team to look at [that]...” ###