Transition Pathways: Energy

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With today's headwinds of energy security and inflation adding to the challenge of tackling the climate crisis, how are companies moving ahead with a resilient, affordable and orderly energy transition? As businesses decide whether to divest, diversify, optimise their infrastructure or offset their emissions, HSBC's Transition Pathways brings together industry insights and sector expertise to help business leaders act on their transition plans, across their capex, supply chains and wider social strategies.

Transition plans are becoming the new normal and, in an increasing number of markets, a regulatory and disclosure requirement for both corporates and financial institutions. Transition plans demonstrates action and practical steps against ambition and show regulators, financiers, investors and customers how an organisation intends to reach net zero, often by 2050, across its operations and value chains.

Our net zero ambition means aligning financed emissions – the greenhouse gas emissions of our clients – to net zero by 2050. We’re setting 2030 targets in different sectors, focusing on the heaviest emitters first. We have set 2030 targets for a 34% reduction in financed emissions for the oil and gas sector, and a 75% reduction in the financed emissions intensity for power and utilities.

How is the sector transitioning?

How are energy businesses approaching the transition to net zero? What is accelerating their decarbonisation, and what is holding them back? We have worked with Kantar to ask 300 companies in over 15 countries what the transition means for their business. (Methodology available below).

Read on to discover how much they are investing and where they are focusing their efforts.



of businesses see net zero as a significant contributor to business growth

Macro drivers


say energy security considerations are accelerating their transition



are already allocating more than 10% of their capital expenditure towards decarbonisation

There is no doubt that companies in the energy sector see emissions reduction as a commercial imperative. It is also clear that the pathway to net zero will be long and challenging. Collaboration with industry, technical and financial partners will help energy companies accelerate towards their objectives.

Alexi Chan | Head of Global Banking Sustainability, HSBC

Fuels and Frictions: Surveying sentiment towards the energy transition

What does this mean for you?

Reducing emissions, driving opportunities

The survey reveals that energy companies are making progress on their transition towards net zero, despite geopolitical stresses and headwinds in the global energy markets.

How to get ahead on the road to net zero

To understand the hurdles to decarbonisation in the energy sector we uncovered some common concerns and set out to address them.

Unlocking the energy pathway

Hear from HSBC's Group Head of Climate Transition, Seb Henbest, as he reflects on the survey results and what this means for energy companies on their transition journeys.

Rewiring the financial system for the energy transition

Financing the world's energy transition will require innovation, collaboration – and trillions of dollars. The financial sector will need to evolve to keep up with the pace of investment.

Our climate strategy

Today we finance a number of industries that significantly contribute to greenhouse gas emissions. We have a strategy to help our customers to reduce their emissions and to reduce our own.

Explore more insights from experts and industry partners on the global transition, and how we're supporting our clients to act on their sustainability ambitions, driving impact for their business, employees and communities.

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Explore how we're supporting customers in their transition to net zero.