HSBC’s Sustainability Head Departs Amid ESG Strategy Overhaul

HSBC confirmed on Friday that Erin Leonard, the global head of sustainability at HSBC Asset Management, is leaving the firm. Her departure marks another high-profile exit amid a broader restructuring under new CEO Georges Elhedery. Leonard’s exit follows that of Celine Herweijer, the bank’s former chief sustainability officer, who stepped down in late 2024.

Leonard had led the Sustainability Office since its creation in 2021, overseeing sustainable investment strategies and diversity, equity, and inclusion (DEI) efforts. Her responsibilities will now be redistributed across the asset management division, with sustainability initiatives folded into the Responsible Investment team led by Cathrine de Coninck-Lopez.

HSBC Asset Management, which manages $179 billion in ESG and sustainable investment strategies, remains a signatory of the U.N.-backed Net Zero Asset Managers initiative. However, the bank has recently faced growing scrutiny over its ESG policies, especially amid increasing political pushback in the U.S. following President Donald Trump’s election.

In early 2025, HSBC drew criticism from environmental groups after scrapping its 2030 net-zero emissions target for its business operations, citing slow progress in the real economy. Despite this, the bank reaffirmed its 2050 net-zero goal and announced a review of its emissions targets tied to lending practices.

Elhedery, who became CEO six months ago, has been aggressively cutting costs and streamlining management, aiming to save $1.5 billion annually by 2026—roughly 8% of total staff expenses. Meanwhile, HSBC has brought in new leadership, including ex-UK politician Danny Alexander to lead a unit focused on infrastructure and low-carbon transition finance.

The bank’s ongoing ESG recalibration reflects shifting priorities as it balances sustainability goals with political and economic pressures.