HSBC has a three step approach to sustainability:

“The first step is to be profitable. Economic success allows HSBC to provide employment, pay taxes and carry out philanthropic initiatives,” says Head of Group Sustainable Development Jon Williams.

“Secondly, we must have a sustainable long term client base. Ensuring our customers have confidence in both the service we provide and the way our business is conducted is crucial. Thirdly, HSBC believes that, if we are to succeed in the long run, we must make sure that we measure the social and environmental performance of our operations.”

“To achieve this, HSBC manages its direct environmental impacts in terms of energy use, water consumption, waste production and carbon emissions. We made a commitment in 2004 to be the world’s first major bank to become carbon neutral, and achieved this in 2005. The information in our annual Corporate Sustainability Report is externally audited by DNV. This includes a review of our carbon neutrality and the data in our global reporting system, which accounts for 96% of HSBC employees.”

“Another aspect of our approach to corporate sustainability is our philanthropic activities, which are consistent with our approach to running the bank and working with clients.” More than 75% of HSBC’s total philanthropic expenditure is directed at the core areas of education and environment, with a focus on forming long term relationships. Major projects include the HSBC Climate Partnership – a five year USD 100 million partnership to tackle the impacts of climate change worldwide – and Future First, which aims to combat global poverty through the provision of healthcare, education and shelter.

“But the biggest impact we have is indirect, through our lending to and investing in companies,” notes Mr Williams. To help ensure that this is consistent with its commitment to sustainability, HSBC applies the Equator Principles to project financing and has also developed a set of Sector Policies covering the bank’s activities in specific sectors, such as forestry, chemicals, energy, mining and water.