According to media reports, Stuart Kirk, an HSBC executive who criticized the financial industry for worrying too much about climate change a few days ago, has now been suspended. Media previously reported that Kirk, head of responsible investment business of the bank's asset management department, attacked the "exaggeration" on environmental issues. He complained that he had to deal with "some lunatics who told me the end of the world" again and again. On Sunday, the media quoted people familiar with the matter as saying that he was suspended during HSBC's internal investigation.
HSBC also drew a line with Kirk's comments, which chief executive Qi Yaonian said were "inconsistent" with HSBC's strategy. A spokesman for the bank declined to comment on the report.
"Climate change is not a financial risk we need to worry about," Kirk said in a 15 minute speech on Thursday. He said, who cares if Miami is 6 meters underwater in 100 years? Amsterdam has been 6 meters underwater for many years.
Kirk worked at Deutsche Bank and has worked at HSBC since the beginning of 2020. He held his current position last year.
Kirk says some banks ignore more pressing issues in order to consider climate risk. He said that the bank he served was attacked by the cryptocurrency circle, constrained by U.S. regulators, the housing crisis was imminent, interest rates were rising, inflation was brewing, and he was asked to pay constant attention to what would happen in 20 or 30 years. He said that this is not in line with the principle of proportionality.
In his speech, he pointed out that although regulators, politicians and senior financial executives are emphasizing risks, the market seems to be taking it easy. The more climate disasters are mentioned, the higher the risk assets, he said. The title of the first slide of his speech was: "unconfirmed, screaming, partisan, selfish, doomsday warnings are always wrong."
Referring to the current economic background, Kirk said that the collapse of the market has nothing to do with climate change.
His speech has led some wealth management institutions to consider avoiding HSBC's asset management products. "At present, there are no HSBC sustainable products in our portfolio, which is totally unhelpful," said Damien lardoux of EQ investors.
"These comments are regressive and seriously flawed," said beau O'Sullivan of the bank on our future movement. "Pension fund clients should note that HSBC Global Asset Management may not be as serious about protecting their capital from climate change as it claims. They should look for more responsible asset management companies. HSBC should ask itself whether Kirk is suitable for this role."
On the second day of Kirk's comments, Qi Yaonian said in a speech at the future investment initiative Institute (fiII) that HSBC hoped to become a market leader in financing the transformation of industry to a low-carbon world.
"In the next 30 years, moving towards a more sustainable carbon footprint will require huge investment," Qi Yaonian said.