Progress, not perfection: What we can learn from Microsoft and HSBC’s climate target pullbacks

Here are the main points:

Microsoft and HSBC, two major companies, faced challenges in meeting their climate targets, with each taking a different approach.
While Microsoft decided to refine its strategy and focus on carbon reduction and clean energy, HSBC postponed its climate targets for its direct operations, reflecting the complexities of decarbonization.
These responses emphasize the need to shift the conversation from criticizing companies for not meeting ideal standards to recognizing tangible actions that contribute to a sustainable future.

Amid the escalating global climate crisis, the journey for companies to decarbonize is increasingly complex, with technological, regulatory, and financial obstacles to overcome. Voluntary climate action is crucial but challenging given current market conditions.

The shifting landscape of corporate climate targets is evident as Microsoft and HSBC recently found their goals unattainable. Microsoft adjusted its climate investments to prioritize carbon reduction and clean energy, while HSBC deferred its direct operations climate targets due to uncertainties around carbon credits and emission reductions.

The contrasting responses of Microsoft and HSBC highlight the pressures on voluntary climate action and the importance of focusing on progress rather than perfection to incentivize corporate climate efforts. Standard setters and guidance providers play a key role in supporting companies in taking decisive climate action and recognizing incremental improvements.

The differing approaches of Microsoft and HSBC underscore that there is no one-size-fits-all solution to corporate climate action. Encouraging companies to take environmental action, even if imperfect, is essential for moving towards a sustainable future.