“Climate change is not a financial risk” — HSBC’s head of responsible investment Stuart Kirk resigns

Stuart Kirk, global head of responsible investments at HSBC Asset Management has resigned from the bank after an explosive reaction to a recent speech he gave asserting that climate change is not a financial risk.

In a LinkedIn post announcing his resignation, Kirk said that HSBC’s behaviour towards him since the speech has made staying in the role, ironically, “unsustainable”.

During his address entitled ‘Why investors need not to worry about climate risk’, at a Financial Times conference in May, Kirk told audiences, “25 years in the finance industry, there's always some nut job telling me about the end of the world.”

He referenced hysteria around Y2K in parallel with what he described as hyperbole around climate risk.

“The lifts didn't stop,” he said.

“But what bothers me about this one is the amount of work these people make me do. The amount of regulation coming down the pipes, the number of people in my team and at HSBC dealing with financial risk from climate change.”

Since the speech, HSBC suspended Kirk and launched an internal investigation, after he commented that policymakers are exaggerating the financial risks of climate change.

“Human beings have been fantastic at adapting to change, adapting to climate emergencies. And we will continue to do so. Who cares if Miami is six metres underwater in 100 years? Amsterdam has been six metres underwater for ages. And that's a really nice place, we will cope with it,” he told audiences in May.

Anne Foster, global head of ESG, sustainability and senior director investments — energy transition at Quinbrook Infrastructure partners commented on Kirk’s post this morning stating, “From a climate perspective, the impacts aren’t 100 years in the future for everyone. Not every country has the resources of Australia, The Netherlands, Miami to, literally, mop it up.”

Kirk’s post on LinkedIn today raised issues around freedom of speech and the damage caused by cancel culture.

“Investing is hard. So is saving our planet. Opinions on both differ. But humanity’s best chance of success is open and honest debate. If companies believe in diversity and speaking up, they need to walk the talk. A cancel culture destroys wealth and progress,” he wrote.

“There is no place for virtue signalling in finance. Likewise as a writer, researcher and investor, I know that words or trading shares can only achieve so much. True impact comes from the combination of real-world action and innovative solutions.”