HSBC Says Oil, Gas Deals to Drop ‘Materially’ in Energy Mix

HSBC Holdings Plc is expecting oil and gas deals to make up a smaller part of its energy portfolio, as renewables look to be the preferred way to feed data centers powering artificial intelligence.

Finance for fossil fuels will likely rise in absolute terms, but “decline materially” relative to HSBC’s overall capital allocations to the energy sector, Julian Wentzel, the UK bank’s chief sustainability officer, said in an interview. That’s due to “new energy systems coming on stream” over time, he said.