HSBC Holdings plc Sustainability Report 2007

Executive Summary
From Corporate Responsibility to Corporate Sustainability
In 2007, we continued our efforts to embed and deliver HSBC’s
sustainability strategy, which recognises that the Group’s continued
financial success depends on our ability to manage and address nonfinancial
considerations material to our business. This requires an
understanding that these non-financial issues do not exist in isolation from
our core functions and operations but are integral to the way we do
business. We refer to ‘corporate sustainability’ rather than ‘corporate
responsibility’ as it describes more succinctly the management of
our direct environmental footprint, sustainability risk and business
opportunities, and our community investment activities.
About this report
In preparing this report, we have taken into account the feedback we
received from stakeholders throughout the year and from specific
stakeholder engagement workshops we held in early 2008 (see page 9).
Climate change, forestry and sustainable lending and finance were
dominant issues for HSBC and our stakeholders in 2007. We address these
issues in detail, explaining our approach to the risks and opportunities
associated with them.
In response to the feedback we received from stakeholders, this report
contains more in-depth reporting on our sustainability policies, practices,
targets and performance, and also includes the views of independent third
parties such as Ceres and Forum for the Future.
International standards and relevant guidelines, such as the Global
Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines and
AA/1000, were consulted to determine material issues not addressed by
stakeholder feedback.
A GRI table is provided online at:
www.hsbc.com/sus-gri
This report focuses on the Group’s largest operations by pre-tax profit and
number of employees, namely the Hong Kong SAR, the UK, the US, the
Middle East, Mexico, Canada, France, China, Brazil and India. Facts and
figures refer to the Group unless indicated otherwise. The report does not
cover joint ventures or subsidiaries not wholly owned by HSBC.
Stakeholders commented that last year’s report was too long, and therefore
hindered effective communication. We have kept this year’s report to 36
pages in an attempt to address the main interests of stakeholders. Issues of
importance to both HSBC and stakeholders not covered in this report can
be found online, including information on anti-bribery and anti-corruption,
countering fraud, anti-money laundering, political donations, public
policy development and tax management.
This information can be found online:
www.hsbc.com/sus-moreinfo
Stakeholders said they wanted to see how we address challenges and
dilemmas. One of the critical issues of the past year and continuing in
2008 is the disruption in credit markets and its effects on home owners in
North America. We have addressed the issue in this report and more
detailed information can be found in the HSBC Holdings plc Annual
Report and Accounts 2007 on page 219.
www.hsbc.com/financialresults
Assurance of this report
We have engaged Det Norske Veritas (DNV) to provide independent third
party assurance of the contents of HSBC’s Sustainability Report 2007 –
see DNV’s statement on page 34. We have requested that DNV conduct
their verification at Group Head Office in London because all information
relevant to HSBC’s direct environmental impact, carbon neutrality,
Commitments in 2007 Achieved? Progress
Expand Energy Sector Policy into a broader framework to assess the risks of
climate change for HSBC’s wider client business.
Complete our portfolio of sector policies with the launch of the Mining and
Metals Sector Policy.
Launch two new business development strategies aimed at sustainable forestry
and water finance.
Yes
Yes
No
New risk advisory service to assist clients with
the risks and opportunities associated with
climate change at an enterprise level, based at
Group level; development of internal guidance
on nuclear power; established a Climate
Change Centre of Excellence in India.
HSBC also updated its Forest Land and Forest
Products Sector Policy.
Water finance strategy currently in draft.
Forestry finance to be completed in 2008.
Expand the existing reporting system to include indirect impacts. Yes Development of a tool to track indirect
sustainability impacts.
Launch a global microfinance strategy. Yes Early 2007. Ongoing in 2008.
Announce a unique community partnership with world-class environmental
charities aimed at understanding, mitigating and adapting to climate change
consistent with our business objectives in this area.
Yes
The US$100 million HSBC Climate
Partnership was announced in May 2007.
Broaden our dialogue with clients on sustainability issues. Yes Commissioned independent stakeholder
engagement research with various stakeholders.
Introduce consistent measure to gauge customer satisfaction in Personal
Finance Services.
Yes
2007 customer recommendation scores for
Personal Financial Services were ahead of
competitor average by 1 point on a 100 point
scale.
HSBC Holdings plc Sustainability Report 2007