The investor, which manages more than $100 billion, plans to seek advice from consultants on whether HSBC Asset Management should help manage its sustainability funds following the controversial comments, the person with direct knowledge of the matter said. the question.
Bank staff have also sought reassurance on their policies as they are concerned about how HSBC will be perceived by customers, said two other sources, who declined to be named as they were not authorized talk to the media. A spokesperson for HSBC declined to comment.
Earlier this month, Stuart Kirk, who is global head of responsible investing at HSBC Asset Management, told a London conference that “climate change is not a financial risk we need to worry about”, remarks that prompted the bank to suspend him and conduct an internal investigation.
Kirk declined to comment when Reuters reached him.
Kirk’s presentation drew criticism from activists who pressured the bank and its peers in the financial services industry to play a bigger role in tackling climate change.
She also prompted The Pensions Regulator in the UK to warn that any pension scheme that fails to take into account the impacts of climate change is “ignoring a major risk to pension savings”.
HSBC is a leading provider of investment services to these schemes.
HSBC chief executive Noel Quinn said Kirk’s comments were “inconsistent with HSBC’s strategy and do not reflect management’s views”. Nicolas Moreau, who heads the asset management division, also distanced himself from Kirk’s remarks.
HSBC Asset Management has received a number of inquiries from institutional clients about Kirk’s comments, one of the sources said.
Some of these institutions said they felt compelled to seek greater clarity and understand HSBC’s official position, the source added.
The possibility of HSBC Asset Management, a division that oversees some $640 billion, losing business comes as the company invests in the unit as part of a broader effort to boost fee income. Over the past year, HSBC has bought businesses in Singapore and India as it seeks to expand in Asia in particular.
The unease also spread to the bank’s internal meetings. Employees who feel concerned posed questions to senior management at a recent town hall meeting, two of the sources said.
Still, several industry pundits have defended Kirk, saying he sparked legitimate debate and that there should be room for dissenting voices in finance.
The impact of climate risk on portfolios may indeed be overstated as Kirk claims, Tariq Fancy, former head of sustainable investing at BlackRock Inc, said in an interview with Financial News on Monday.