HSBC

The financial institution has a publicly available policy statement that not only commits to respect ILO core labour rights but also expects suppliers to follow suit. In addition to that, it has another publicly available policy statement that commits to respecting human rights.

The institution also discloses specific actions that have been taken to align lobbying and public policy engagement with its sustainability strategy. Alongside this, it identifies key sectors, clients, and investees for climate engagement. Importantly, at least one example is provided of how products, services, and capital support climate adaptation and resilience.

Furthermore, the institution discloses that it has established interim climate targets for 2025 and 2030 aligned with a 1.5C trajectory and publishes a transition plan covering its own operations, supply chain, and portfolio. It also discloses its operational details by country. Finally, there is a process for identifying social risks related to the provision of products, services, and capital in the context of the net zero transition.

While the financial institution has identified material sustainability impacts across its value chain, it could provide a more detailed account of the process it employs, including how objective criteria and supportable evidence are considered for the identification and prioritization of these impacts. Moreover, it has the opportunity to incorporate anti-bribery and anti-corruption clauses in its contracts with business relationships. Although its subsidiary HSBC Asset Management discloses a stewardship plan supporting environmental transitions and social best practices in line with its sustainability strategy, the institution as a whole has the opportunity to develop a comprehensive stewardship or engagement policy at the group level.

When it comes to sustainable finance and investment, although the financial institution has set time-bound and measurable targets, it could be more specific about the share of its resources that are dedicated to climate solutions. The institution discloses its presence in environmentally sensitive areas, such as those with high water stress and protected biodiversity areas but further detailed the amount and/or share (in monetary terms) of its products, services, and capital that are linked to its priority sectors and areas with the highest negative impact on nature. This would provide a more complete picture of its environmental footprint. It is recommended that the financial institution discloses the breakdown of its clients and/or beneficiaries by income group.

In the area of risk assessment, while the institution’s process currently includes risks associated with some ILO fundamental rights related to its products, services, and capital, it could expand its coverage to include the full set of rights. Finally, it is recommended that the financial institution provides an example of the specific conclusions it has reached and the actions it has taken or plans to take in response to at least one of its significant human rights issues.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.