The world's local bankOur Commitment
HSBC is taking a number of steps and introducing new initiatives to reduce the environmental impact of its day-to-day operations.
Sustainability Risk Framework
HSBC has introduced a framework to enable it to manage sustainability risks, which may arise where we are asked to provide financial support to clients whose activities may run counter to the needs of sustainable development. Sustainability risks are often referred to as environmental risks, where the impact is on the physical environment, or social risks, where the impact relates to people.
The basis of the framework was the publication of HSBC's Environmental Risk standard in 2003. The standards require all members of the HSBC Group to assess environmental risks which may arise as a result of the bank's lending activities. It has since developed further and now includes both environmental and social risks within a sustainability risk standard.
A small number of industry sectors have a greater capacity to create high sustainability impacts if not managed sensitively. It is HSBC's practice to identify such sectors and to provide specific guidelines for the management of risk within those sectors. The guidelines comprise:
- Sector policies which provide a summary of the risks, details of international standards with which HSBC expects its offices to comply, and information on high-impact activities which the bank is not prepared to support;
- Sector guidance notes, which provide more detailed information on risk, international standards and related sub-sectors.
HSBC has produced sector policies in the following areas:
- Chemical Sector Policy
- Energy Sector Policy
- Forest Land and Forest Products Sector Policy
- Freshwater Infrastructure Sector Policy
Read about other HSBC initiatives
Sustainability Risk Framework
HSBC considers potential environmental and social impacts resulting from its provision of lending and other services.
Santiago Buses
In 2004, after two years of planning and negotiation, HSBC helped finance a deal to provide nearly 1,800 Volvo buses, serving 4.5 million passengers a day in Santiago, Chile.
HSBC Environmental Conference
HSBC takes responsibility for fostering dialogue about its environmental policies both among employees and managers and externally with other companies, organisations, and governments.
Sustainable Development
Group Sustainable Development was established in 2005 to implement a sustainable development strategy which incorporates policies on the management of environmental and social risk, and sustainable business development.
Financing Wind Farms
HSBC set up a financial package to enable Fred Olsen Renewables Limited to develop wind farms at Rothes and Paul's Hill in Moray, Scotland. The finance package included facilities that were firsts in the UK in the renewable energy sector.
Responsible Business
How HSBC conducts its business responsibly.
