“At two degrees of warming, we will face the potential disappearance of coral reefs”

Speaking at the recent Climate Change Roundtable, Greg Lowden, CEO of HSBC Mauritius, emphasized the critical vulnerabilities Mauritius faces due to climate change, including rising sea levels, increasingly severe storms, and threats to the tourism and fishing industries. He highlighted the significance of transitioning to net-zero emissions, and called for collective responsibility and collaboration to mitigate climate risks. The CEO also pointed to the opportunities presented by renewable energy and sustainable practices as essential pathways to building resilience and ensuring long-term growth.

Climate change is no longer a distant threat but an immediate crisis, says Greg Lowden, the CEO of HSBC Mauritius. Scientists indeed predict that 2024 will see global temperatures reaching 1.55°C above pre-industrial levels, surpassing the 1.48°C record set in 2023. “At two degrees of warming, we will face catastrophic consequences, including the potential disappearance of coral reefs as oceans become too warm to sustain them. It’s crucial that we strive to limit global warming to 1.5 degrees to prevent these devastating outcomes”, he cautioned.

Greg Lowden was addressing an audience who gathered around the issue of tackling climate change. The conference was jointly organized by the British High Commission, HSBC Mauritius, and the Mauritius Institute of Directors (MIoD), and brought together policymakers, business leaders, and experts to discuss actionable strategies for a sustainable future.

Mauritius is already experiencing the impacts of this global crisis, underscored the CEO. He highlighted more frequent and intense weather events, such as powerful storms, cyclones, and floods. He referenced a recent report by the Stimson Centre’s Climate and Ocean Risk Vulnerability Initiative (CORVI), developed in collaboration with the Mauritius Ministry for the Blue Economy. The report identifies critical vulnerabilities in the island’s coastal zones, tourism industry, and fishing sector. Rising sea levels, erosion, and warming ocean temperatures threaten these vital areas. 

“The loss of protected ecosystems like mangroves increases these risks and threatens natural defenses against climate change. The tourism sector faces challenges from erosion and rising seas, while our fishing industry is at risk due to warming ocean temperatures and diminishing fish stocks. The report recommends developing a sustainable coastal management plan, enhancing groundwater monitoring and shifting towards ecotourism. All this is just one example that should lead us to conclude that we stand at a crossroads. Should we work together to transform our businesses to cap global warming? This goal demands a profound shift from all of us, often termed the transition to net zero,” he said.

Highlighting the role of businesses in combating climate change, Greg Lowden shared HSBC’s proactive measures. Earlier this year, HSBC launched its first global net-zero transition plan, a comprehensive strategy to help achieve a low-carbon global economy. “We’re focused on helping to deliver a net-zero global economy, working with our clients as their trusted transition partner,” Greg Lowden said.

This initiative reflects HSBC’s commitment to collaborating with its clients to reduce emissions and embrace sustainable practices. “Our journey emphasizes a shared responsibility,” the CEO noted, adding that “our clients’ emissions are our emissions. Achieving net zero will require collective effort.”

The speech was not limited to the challenges posed by climate change. “Climate readiness clearly entails costs, but it also presents notable opportunities,” Greg Lowden remarked, urging businesses to “embrace this change and watch your company flourish in a greener future.”

One such opportunity lies in the adoption of renewable energy. Transitioning to solar and wind power offers notable savings on fossil fuels, enhances energy security, and reduces foreign exchange pressures for Mauritius. Moreover, companies that adopt sustainable practices become more attractive to customers and investors. “The world around us is evolving with many positive trends emerging,” the CEO observed, pointing to the widespread adoption of electric vehicles and the growing share of renewables in the global electricity mix.

Should we work together to transform our businesses to cap global warming? This goal demands a profound shift from all of us…

Citing the International Energy Agency’s (IEA) Renewables 2024 report, he highlighted the expected increase in renewable energy’s share in the electricity sector from 30% in 2023 to 46% by 2030. “Mauritius has plenty of sun and wind available to harness these trends,” he emphasized.

Collaboration was a recurring theme in Greg Lowden’s address. He expressed gratitude for the support HSBC and the Climate Governance Initiative (CGI) Mauritius receive from the UK Task Force for Access to Climate Finance. He also highlighted the importance of training programs aimed at helping Mauritian companies align with global sustainability standards. “This is a vital topic for us to address in partnership. Together, we can build a more sustainable future for Mauritius,” he declared, inviting all stakeholders to join hands in addressing the climate crisis.