HSBC said today it expected all its clients to set out plans to exit the fossil fuel industry by the end of 2023.

The banking and financial services organisation which currently serves more than 40 million customers said that is part of its efforts to reduce thermal coal financing exposure by at least 25% by 2025 and 50% by 2030.

It will seek to withdraw any financing and advisory services with a client that makes a new commitment to or proceeds with thermal coal expansion after 1st January 2021.

HSBC will also stop providing new finance to any client whose thermal coal-related revenues are greater than 30% of total revenues by 2025.

Celine Herweijer, Group Chief Sustainability Officer at HSBC, said: “Eliminating coal-fired power emissions is the most symbolic and important milestone along the road to net zero.

“Coal-fired power stations contribute roughly a fifth of global carbon emissions output, and the science very clearly tells us they can have no part of a net zero world. No new coal is no longer good enough: our attention has to turn to urgent phase-out of existing coal-fired power.”