A part of Watch Media

AMWatchWednesday4 October 2023

  • Latest
  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Search
  • Log in
AMWatchWednesday4 October 2023
  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
AMWatch

HSBC Head of Responsible Investing slams climate "nut jobs" in controversial presentation

Stuart Kirk, who is responsible for integrating ESG risks across asset classes at HSBC asset management, told conference participants the financial industry should ”get back to making money out of the transition.” He has since been suspended.
Photo: Stefan Wermuth/Reuters/Ritzau Scanpix
Photo: Stefan Wermuth/Reuters/Ritzau Scanpix
By Harry Wilson and Loukia Gyftopoulou, bloomberg

HSBC Holdings Plc distanced itself from its asset management unit’s head of responsible investment after the executive criticized the finance industry for worrying too much about the environment.

“Climate change is not a financial risk that we need to worry about,” HSBC’s Stuart Kirk said Thursday in a 15-minute presentation at a Financial Times conference. “There’s always some nut job telling me about the end of the world.”

Kirk, whose role means he is responsible for integrating ESG risks and opportunities across asset classes at HSBC Asset Management, also took aim at former Bank of England Governor Mark Carney and other policy makers for talking up the risk from climate change.

“I completely get that at the end of your central bank career there are still many, many years to fill in,” he said. “You’ve got to say something, you’ve got to fly around the world to conferences, you’ve got to out-hyperbole the next guy. But I feel like it is getting a little bit out of hand.”

Kirk, who didn’t respond to a LinkedIn message seeking comment, said banks were neglecting more pressing problems in order to consider climate risks.

Who cares if Miami is six meters underwater in 100 years, Amsterdam’s been six meters underwater for ages, and that’s a really nice place

Stuart Kirk

“I work at a bank that is being attacked by crypto, we’ve got regulators in the US trying to stop us, we’ve got the China problem, we’ve got a housing crisis looming, we’ve got interest rates going up, we’ve got inflation coming down the pipes, and I’m being told to spend time and time again looking at something that is going to happen in 20 or 30 years hence,” he said. “The proportionality is completely out of whack.”

Humanity should be focused on adapting to a changing environment, said Kirk, pointing to the example of Miami: “Who cares if Miami is six meters underwater in 100 years, Amsterdam’s been six meters underwater for ages, and that’s a really nice place. We will cope with it.”

Suspended

Nicolas Moreau, chief executive officer of HSBC’s asset management unit, issued a statement disavowing Kirk’s speech. The remarks “do not reflect the views of HSBC Asset Management nor HSBC Group in any way,” he said.

“HSBC regards climate change as one of the most serious emergencies facing the planet, and is committed to supporting its customers in their transition to net zero and a sustainable future and, like HSBC Asset Management, is committed to achieving net zero by 2050.”

Kirk has since been suspended, despite the speech’s theme and content having been agreed internally, the Financial Times reports.

The bank’s Group Chief Sustainability Officer Celine Herweijer said Kirk’s comments are “absolutely not the company’s view,” speaking on the sidelines of an ESG summit in London hosted by Saudi Arabia’s Future Investment Initiative Institute.

“It’s an individual’s comments completely unaligned with the company,” she told Bloomberg. “Climate change is a top headline issue for HSBC and the transition to net zero is a top priority. We are very clear on that commitment, it is a core pillar of HSBC’s strategy. We are in a climate emergency. Action needs to be rapid and urgent.”

”Grossly flawed”

The speech has already led some wealth managers to consider shunning HSBC’s asset management products. “We don’t have any HSBC sustainable products in our portfolios at the moment and this didn’t help at all,” said Damien Lardoux, head of impact investing at EQ Investors.

“These comments are regressive and grossly flawed,” said Beau O’Sullivan, senior campaigner for the Bank on our Future campaign. “Pension fund clients should note that HSBC Global Asset Management might not be as serious about protecting their capital from the effects of climate change as it claims to be, and they should be looking for a more responsible asset manager. And HSBC Group should be asking themselves if Kirk is right for this role.”

”Let’s get back to making money”

Kirk has worked at HSBC since early 2020 and took on his current role in July 2021, according to an HSBC statement at the time. Previously, he worked for Deutsche Bank AG’s asset management unit.

His presentation made the case that while regulators, politicians and senior financiers were playing up the risks, the markets appeared to be taking the danger in their stride. “The number of times climate catastrophe is mentioned, the higher and higher risk assets go,” he said. His first slide was titled: “Unsubstantiated, shrill, partisan, self-serving, apocalyptic warnings are ALWAYS wrong.”

Pointing to the current economic backdrop, Kirk said markets were “crashing around our ears today and yesterday for nothing to do with climate change whatsoever.”

HSBC Group should be asking themselves if Kirk is right for this role

Beau O’Sullivan, senior campaigner for the Bank on our Future campaign

“I implore our leaders, and our regulator most of all, because I spend way too much time at work dealing with this, just show some perspective and let’s get back to making money out of the transition because there are thousands of opportunities out there.”

A day after Kirk’s comments, HSBC CEO Noel Quinn gave a more on-message speech at the FIII conference, saying the bank wanted to be a market leader in financing the transition of industry to a low-carbon world.

“Over the next 30 years the move to a more sustainable carbon footprint will require huge investment,” Quinn said. “That has to happen in space and time, like we haven’t seen before.”

Climate change is a particularly sensitive issue at HSBC after it faced a warning from the UK’s advertising watchdog over greenwashing. The Advertising Standards Authority found the bank misled customers in two ads published in October, the Financial Times reported earlier this month. The bank is responding to the ASA’s draft recommendations, according to the FT.

ESG manager blasts Swedish Article 8 funds: ”You’re basically selling hot air”

ESG managers skewer ”ridiculous” idea of embracing arms stocks

Beslik hopes to deliver ”a proper outcome” with Japanese fund

Share article

Related articles:

  • Beslik has some thoughts about "light green" funds owning Ericsson | Photo: Jakob Melgaard / PFA

    ESG manager blasts Swedish Article 8 funds: "You're basically selling hot air"

    For subscribers

  • PFA's Sasja Beslik, Nordea Asset Management's Eric Pedersen and KLP's Kiran Aziz. | Photo: PR

    ESG managers skewer "ridiculous" idea of embracing arms stocks

    For subscribers

  • Sasja Beslik is sick of greenwashing and is off to Japan | Photo: Jakob Melgaard / PFA

    Beslik hopes to deliver ”a proper outcome” with Japanese fund

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

Newsletter terms

Front page now

Following Ingrid Bonde's resignation, Jan-Olof Jacke has been appointed acting chair of Alecta's board. | Photo: Evelina Carborn / Alecta PR
Pension

Bonde was losing support at Alecta prior to departure, Swedish daily reports

The resignation of pension giant Alecta’s chair may have been caused by pending criticism from the authorities caused by the pension giant’s risky investments – as well as a lack of internal support.
  • Alecta’s chair resigns from board of the troubled Swedish pension giant
  • Despite predicting more losses, Alecta is prepared to increase Heimstaden investment

For subscribers



Bettina Lange has been responsible for Castellum's Danish activities for the past seven years. | Foto: PR
People

Castellum's Danish country manager to join Norwegian pension investor

For subscribers



Adam Kybird is the fund manager of the Triodos Food Transition Europe Fund. | Photo: PR/Triodos
Fund Management

Impact pioneer eyes investor appetite for a food revolution

For subscribers


70 companies are part of the Science Based Targets climate initiative. | Photo: Jens Dresling
Responsible Investing

Two Danish pension funds first in the world to receive approval from climate initiative

For subscribers


Ingrid Bonde has stepped down as chair of Alecta's board. | Foto: Evelina Carborn / Alecta PR
Pension

Alecta’s chair resigns from board of the troubled Swedish pension giant

For subscribers


Head of the public pension sector at Storebrand, Jon M. Hippe. | Foto: Kristian Skalland Moen/Storebrand
Pension

Storebrand maintains its first municipal pension deal

For subscribers


  • Ole Mikkelsen joined as head of commercial real estate fund BI Erhvervsejendomme in January 2020 and has since then also been responsible for residential rental properties fund BI Boligejendomme. | Photo: PR / Bankinvest

    BankInvest's two alternative funds in negative territory

    Investors have withdrawn from BankInvest’s two alternative real estate funds in the first half of 2023, and the funds are expected to deliver negative returns for the remainder of the year.

    For subscribers


  • Carl Haglund (l.), CEO of Veritas and Carl Pettersson, CEO of Elo. | Foto: PR Veritas and Elo.

    Finnish pension fund CEOs propose higher risk to overcome demographics

    CEOs of pension insurance companies Veritas and Elo comment on the Finnish government’s plans to kick off yet another pension reform as part of efforts to save the welfare state.

    For subscribers


  • Hanna Porkka will join OP Financial Group next spring as executive vice president, wealth management. | Foto: PR OP.

    S-Bank's head of WM moves to bigger role and asset volumes at OP

    S-Bank is looking for a new head of wealth management and deputy CEO, following Hanna Porkka’s announcement that she is joining OP Financial Group next spring. 

    For subscribers


  • Mandatum headquarters in Helsinki, Finland. | Foto: PR / Mandatum

    Mandatum set to debut in Helsinki in biggest listing since 2005

    Sampo Oyj is spinning off its unit Mandatum, the biggest addition to Helsinki’s stock market in almost two decades.

    For subscribers


  • Kim Mikkelsen (left) sees positive prospects in Jan Johan Kühl and Polaris' decision to enter the market for listed companies. | Foto: Strategic Investments/Polaris

    Polaris welcomed into new territory: "There is a huge need for capital"

    Kim Mikkelsen, CIO of Strategic Investments, thinks that valuations are currently at an attractive level in the small-cap segment.

    For subscribers


  • Foto: Agustin Marcarian/Reuters/Ritzau Scanpix

    AP2 teams up with think tank to identify deforestation exposure in global portfolios

    A collaboration between Swedish buffer fund AP2 and think tank Climate & Company aims to offer other investors a guideline to identify potential exposure to deforestation.

    For subscribers


Further reading

Adam Kybird is the fund manager of the Triodos Food Transition Europe Fund. | Photo: PR/Triodos
Fund Management

Impact pioneer eyes investor appetite for a food revolution

As interest from institutional investors grows, Dutch impact investor Triodos Investment Management is aiming to make several new additions to its Food Transition Europe Fund.

For subscribers



70 companies are part of the Science Based Targets climate initiative. | Photo: Jens Dresling
Responsible Investing

Two Danish pension funds first in the world to receive approval from climate initiative

In the future, AkademikerPension and PensionDanmark will push their portfolio companies to meet CO2 targets due to the Science Based Targets initiative’s validation of the funds’ climate plans.

For subscribers



Ingrid Bonde has stepped down as chair of Alecta's board. | Foto: Evelina Carborn / Alecta PR
Pension

Alecta’s chair resigns from board of the troubled Swedish pension giant

Ingrid Bonde has chaired Alecta during a turbulent period when risky investments in Heimstaden Bostad and three US niche banks came under increased scrutiny. Now she is history at the pension giant. 

For subscribers


Bettina Lange has been responsible for Castellum's Danish activities for the past seven years. | Foto: PR
People

Castellum's Danish country manager to join Norwegian pension investor

Swedish Castellum loses its Danish country manager, Bettina Lange, who will become CEO of Norwegian-owned KLP Ejendomme based in Copenhagen.

For subscribers



Charlotte Mansson (left) and Elisabeth Sterner are BlackRock's head of sustainable & transition solutions, Nordics and Netherlands, and head of Nordics, respectively. | Foto: BlackRock PR / Jeppe Carlsen / Håkan Målbäck
Responsible Investing

BlackRock: High number of US investors plan to increase allocation to green transition

More than half of the institutional investors polled in a new BlackRock survey are planning to increase their low-carbon allocation. In the Nordic region and the US, the percentage is even higher.

For subscribers



Billionaire John Fredriksen is born in Olso,, Norway, and now a naturalized Cypriot citizen. | Foto: Ints Kalnins/Reuters/Ritzau Scanpix
AMNews

Norwegian investment firm loses 63% of its capital after billionaire pulls out

A Norwegian billionaire is pulling out all his capital deployed to Aeternum Capital, established in 2020 by former Odin fonder manager Vegard Søraunet. Recently, the firm lost a top-ranking manager. 

For subscribers


Jobs

  • Chief Investment Officer (CIO)

  • Senior Associate (Financing)

  • CEO - easySure Denmark

See all jobs

Latest news

  • Bonde was losing support at Alecta prior to departure, Swedish daily reports –
  • Castellum's Danish country manager to join Norwegian pension investor –
  • Impact pioneer eyes investor appetite for a food revolution –
  • Two Danish pension funds first in the world to receive approval from climate initiative –
  • Storebrand maintains its first municipal pension deal –
  • Alecta’s chair resigns from board of the troubled Swedish pension giant –
  • BankInvest's two alternative funds in negative territory –
  • S-Bank's head of WM moves to bigger role and asset volumes at OP –
  • Finnish pension fund CEOs propose higher risk to overcome demographics –
  • Polaris welcomed into new territory: "There is a huge need for capital" –
See all

Jobs

  • Chief Investment Officer (CIO)

  • Senior Associate (Financing)

  • CEO - easySure Denmark

See all jobs

Colophon

AMWatch
Search

Sections

  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Sitemap
  • RSS feeds

Editor

Anne Louise Houmann

alh@amwatch.dk

Tel.: +45 2830 5142

  • About AMWatch

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Banner Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7491

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7491

Jobs

Subscription

Try AMWatch or get an offer for a subscription meeting the exact needs of you or your company.

amwatch@infowatch.dk

Tel.: +45 7077 7491

Learn more about subscriptions here

Address

AMWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8382

Guidelines

  • Privacy Policy

Copyright © AMWatch — All rights reserved