Celine Herweijer, group chief sustainability officer at HSBC, has announced her departure from the bank at the end of the year, sparking debate about the organisation's commitment to climate strategies.

Herweijer will leave her role after being removed from the bank's top decision-making body, the group operating committee, in a recent management restructuring led by new chief executive officer Georges Elhedery. The bank will replace her with Julian Wentzel, currently head of global banking for the Middle East, North Africa and Turkey region, on an interim basis.

The executive's exit comes at a critical time for financial institutions navigating increasing scrutiny of environmental, social and governance (ESG) commitments. Andrew Harper from Epworth Investment Management, a shareholder in HSBC, expressed significant concern, stating: "With Celine's departure, HSBC has lost a crucial moral compass in its journey toward net zero."

HSBC has sought to quell growing investor anxieties, emphasising that "supporting the transition to net zero remains a priority" and constitutes one of the bank's four core business strategy pillars. The organisation unveiled its first net-zero transition plan in January, committing to help its heaviest-emitting clients decarbonise their businesses by 2050.

Herweijer, who joined HSBC in 2021 after serving as global sustainability and innovation leader at PwC, reflected on her tenure: "I believe that HSBC – as one of the world's largest banks – has a key role to play in financing the transition across the global economy and supporting our customers."

The departure follows a broader industry trend of scepticism towards green investing. Notable figures like Larry Fink from BlackRock have distanced themselves from ESG terminology, while other financial leaders, including Jamie Dimon of JP Morgan, have criticised net-zero transition strategies as "enormously naive".

Elhedery has consistently defended the bank's sustainability commitments, asserting last month that HSBC remains "committed to become a net zero bank by 2050" and that these fundamental objectives will not change.

The restructuring, which reduced the executive committee from 18 to 12 members, has raised questions about the bank's future environmental approach. Investors and climate advocates are watching closely to see whether HSBC will maintain its ambitious sustainability targets.

Herweijer's departure marks a significant moment in the bank's climate strategy, leaving many to wonder about the future direction of HSBC's net-zero commitments.

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