Sir Nicholas Stern, the author of the report on climate change, is to become a special adviser to HSBC, as the world's third-largest bank seeks to strengthen its environmental credentials.

HSBC said that Sir Nicholas would be responsible for advising HSBC on economic development issues and the implications of climate change on the group and its clients as a special adviser to the Chairman on Economic Development and Climate Change.

Sir Nicholas, a former World Bank chief economist, is the IG Patel Professor of Economics and Government at the London School of Economics and Political Science (LSE).

From 2003 to 2007 he was head of the Government Economic Service and adviser to the UK Government on the Economics of Climate Change and Development, reporting to the Prime Minister and the Chancellor.

During this time he conducted a review of the economics of climate change, which led to the publication of the Stern Review on the Economics of Climate Change.

In 2004-05 he directed the writing of the Commission for Africa report.

Stephen Green, the chairman of HSBC Group, said: “Sir Nicholas Stern brings unrivalled knowledge and insight of the economic consequences of climate change at a global level. We are delighted that someone of his calibre and international reputation has agreed to join HSBC.

"His appointment further demonstrates that sustainability issues are at the forefront of HSBC’s agenda.”

Sir Nicholas said: “HSBC understands that climate change is an issue we cannot ignore. I intend to further develop and incorporate an understanding of climate change into HSBC's economic models and analysis for the future.

"Unless organisations of this scale embed the principles of sustainability into their business and respond to what we already know about the causes and likely impacts of climate change, they will be letting down their customers, their shareholders and future generations.”

HSBC said that Sir Nicholas would retain his position at LSE while working in a part-time capacity with the HSBC global head office in London.

It said that his role would include "providing direct advice on specific strategic issues in emerging markets where the bank has aspirations to grow its business; advising on the socioeconomic implications of climate change and representing HSBC on these issues; contributing to management development programmes ... and providing advice to major clients of the group who seek to develop sustainable business strategies or other programmes relating to climate change and to economic development issues".

HSBC has committed $90 million (£45 million) over five years to reduce its impact on the environment through a series of initiatives, including the introduction of renewable energy technology, water and waste reduction programmes and employee engagement.

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