The investment bank said that by the end of 2026, it will eliminate single-use PVC plastic, in favour of recycled PVC plastic (rPVC).
The programme, which includes HSBC’s debit, credit and commercial cards, is part of the bank’s strategy to reduce its carbon emissions and achieve net zero in its operations and supply chain by 2030 or sooner.
Working with global cards manufacturer IDEMIA, the bank will introduce new cards gradually across its locations.
Rollout started in Malaysia in January 2021 and will continue in Sri Lanka in April; followed by the UK this summer and will then extend across further countries and markets by the end of 2021, including Australia, Canada, Indonesia, Macau, Mexico, Singapore, UAE and US.
Based on the current volume of cards issued by HSBC per year (23 million), the move to rPVC will reduce CO2 emissions by 161 tonnes a year and each card will also reduce plastic waste – 73 tonnes per year, that’s the weight of over 40 cars.
Richard Harvey, Group Head of Retail Banking Products, at HSBC, said: “We’re delighted that recycled plastic materials are now available at a scale that enables us progressively to replace our payment cards around the world. This will reduce our carbon emissions as we transition to sustainable materials throughout the card production process. This is another step as we move towards a net zero business, to help the bank and our customers make a positive impact on the environment.”
As locations begin issuing rPVC cards, customers requiring new or replacement cards will be the first recipients and to preserve the life of their existing cards for as long as possible, recycled plastic cards will be issued as their old cards naturally expire.
The availability of rPVC cards will vary by location, as each country joins the programme.
“This will reduce our carbon emissions as we transition to sustainable materials throughout the card production process. This is another step as we move towards a net-zero business, to help the bank and our customers make a positive impact on the environment”Richard Harvey – Head of Retail Banking Products, HSBC Group
The move to rPVC underpins HSBC’s global ambition to build a thriving and resilient future and is part of the bank’s transition to be a net zero business and the switch is a first step in a gradual transition to issue cards made from sustainable materials, and HSBC will continue to evaluate other alternative materials too.
Taylan Turan Group Head of Customers, Products and Strategy at HSBC, said: “HSBC is committed to achieving net zero by 2050 or sooner; and we’ve pledged to work with our customers in all sectors to reduce emissions. Evolving our payment cards to eliminate single-use plastic cards is part of our aim to be net zero in our operations and supply chain by 2030 or sooner. New sustainable materials, such as rPVC, offer the financial services industry a clear way to accelerate its efforts to build a more sustainable future, and we’re proud to be part of a movement which is gathering momentum across the world.”
Global research conducted for HSBC by Mintel found a majority (77%) of consumers agree that ‘financial services firms have an important role to play in creating a more sustainable society’; when it comes to their appetite for payment cards made from sustainable materials, over two-thirds (67%) showed high levels of interest.
A separate global survey, conducted for IDEMIA by Dentsu Data Labs found that most people (92%) think their bank should actively contribute to preserving the planet; and a majority (87%) expect their banks to offer eco-friendly cards.
IDEMIA’s Executive VP Financial Institutions Amanda Gourbault said: “IDEMIA is proud to be a long-term global partner of HSBC and to be supporting its sustainability goals with our GREENPAY solution – part of our portfolio of sustainable solutions for financial institutions. We fully share HSBC’s goals of sustainability – we believe bank cards shouldn’t cost the earth; and we look forward to working with HSBC as it migrates its card portfolio worldwide to rPVC. Manufactured from waste materials, rPVC cards significantly reduce plastic waste, which is one of the most pressing problems of our modern world. Migrating to recycled plastic also saves energy, limits oil consumption and reduces greenhouse gas emissions, to help mitigate global warming and reduce air pollution.”