HSBC Holdings Inc. will consider net zero emissions plans for the companies that it invests in, though it has been criticized for not being strict enough. 

HSBC has set new targets to reduce the emissions from its lending, the Wall Street Journal reported on Feb. 22. A representative from ShareAction, a nonprofit group that has worked on an investor effort pushing HSBC for tougher climate targets, criticized the measures taken as not enough. 

The plans excluded fossil-fuel financing from capital-markets activities, drawing Jeanne Martin to state that the exclusion “should raise questions about the credibility of its strategy." HSBC responded that in developing its standards, it referenced industry standards and does not encompass emissions from capital-markets activities.

On the topic of working with companies to create climate plans that would aid HSBC in reaching net-zero emissions by 2050, HSBC Chief Sustainability Officer Celine Herweijer said, “We want to support those who take an active role in the energy transition; this is where we can have the greatest impact in making net zero a reality," according to the Wall Street Journal.

The plan outlined by HSBC would see a reduction in emissions from oil and gas companies that were lent money from the bank. HSBC is currently one of the world's largest lenders to the fossil fuel industry, according to the Wall Street Journal.

“Our new approach of considering client [net-zero] transition plans will apply for financing for any type of transaction—including capital markets,” an HSBC spokeswoman said. HSBC reported the emissions from the companies they invested in for the first time on Tuesday, Feb. 22, per the Wall Street Journal.

As of 4 p.m. on Thursday, Feb. 24, Dimensional Fund Advisors (DFA) LP is the largest shareholder in HSBC Holdings PLC. The former has a 0.23% stake in the latter. This is .12% more than the next largest shareholder, according to CNN.

According to Investopedia, Dimensional Fund Advisors (DFA) LP is headquartered in Austin, Texas.