Fsr Energy & Climate

Zoë Knight, Managing Director and Group Head of the HSBC Centre of Sustainable Finance, shares her thoughts on the role of the Finance sector in the net-zero transition with Joana Freitas, Ambassador for the FSR Lights on Women initiative. The financial sector’s role in the global response to climate change will entail not only accelerating low carbon investments but also supporting the transition of carbon-intensive sectors. When it comes to investments in green renewable generation, investors’ appetites seem to exceed the volume of investable projects. Knight identifies a variety of reasons, highlighting that the “risk assessment for how strong the investment will contribute to solving climate goals isn't truly reflected yet”. On the other hand, the hard-to-abate sectors, including industry, heavy-duty transport and agriculture, account for around 40% of greenhouse gas emissions but still attract limited investment. In Knight's perspective, companies need to clearly demonstrate what their climate strategy i