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Teresa AuHSBC Head of Corporate Sustainability Asia Pacific Region

Our values. Our conviction. Our actions.

The Strategy for Corporate Sustainability:

an HSBC Perspective

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Why sustainability is so relevant to businesses?

“Climate change will affect everyone but developing countries will be hit hardest, soonest and have the least capacity to respond.” Lord Stern, Special Advisor to HSBC Group Chairman

“The essence of business statesmanship in the 21st century… is to build a more sustainable, prosperous global economy that will benefit all.”Ban Ki-moon, Secretary General of the United Nations

“The emerging economies of Asia will be among the world's largest emitters of greenhouse gases… they must be full participants in setting the global direction forward.” Lee Hsien Loong, Prime Minister of Singapore

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Sustainability is at the heart of our business

Economic

Social

Environmental

Banking for the long term

Corporate Sustainability

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4 Global corporate sustainability priorities

Stakeholder Engagement

(Communication, Reporting, Involvement, Partnership)

“Be the world’s leading brand in corporate sustainability” ― Stephen Green

Sustainable

Finance

Footprint

Management

Community

Investment

People

and

Diversity

Engaging customers on low-carbon solutions Climate Confidence Monitor revealed that…

43% of those surveyed chose climate change ahead of global economic stability when asked about their top 3 concerns

Holistic programmes :

Development of practical low-carbon tools

Capitalising on Capitalising on

the Business Opportunity*the Business Opportunity*

CCBF’s Business Guide WWF’s Low Carbon Office

Operation Programme

The Climate Group’s HKCRC

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Our Perception of the Financial Opportunity…

Investments in clean energy by end of 20082

Markets for low-carbon energy products by 20501

Global Carbon Market in 20083

US$155 bnUS$155 bn

Sources (July 2009):1 – Stern, 2 – UNEP & New Energy Finance, 3 – Point Carbon, 4- HSBC Global Research

US$500 US$500 bnbn

US$116 bnUS$116 bn

US$470 bnUS$470 bn Governments’ “Green” StimulusPlans as of May 20094

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Combating climate change via products & services

Global Climate Change Benchmark Index with broad sector and industry coverage

Green insurance products in Brazil, Hong Kong, Mexico and Argentina

Green project financing

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Green Credit Card 1st in Asia Pacific 1st Eco-Product label “HSBC Green Roof for Schools”

Capturing first-mover competitiveness

Green Equipment Financing 1st in Hong Kong and Pearl River Delta Region

Government’s Cleaner Production Partnership

HomeSuranceNew

feature

GREEN

Green HomeSurance & Green TravelSurance 1st in Asia Pacific “Eco Blocks for Eco Schools”

Energy Efficiency Loan Scheme 1st in Hong KongFacilitates building retrofits

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Minimising our own environmental footprint

First carbon neutral bank Global Environmental Efficiency Programme

Managed Print Service

Video-conferencing

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Pioneer partnerships with governments

Green Hong Kong ▪ Carbon Audit

Secretary for the Environment & HSBC in an

community environmental campaign launch

Chief Secretary for Administration & HSBC

in the establishment of

Social Enterprise Business Centre

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Developing sustainable livelihoods

Microfinance

India, Mexico, Philippines

and Sri Lanka

Rural bank

China

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Future First

Supports some 133,000 homeless and disadvantaged

children in 39 countries.

Investing in communities: Education & Environment

JA More than Money

Builds financial and business literacy for over 100,000

children across 25 countries.

HSBC Climate Partnership

Tackles climate change impacts for people, forest, water

and cities; and engages colleagues as climate champions.

Wetland conservation in mainland China

HSBC Group Chairman visited one of the three HSBC-

supported wetland sites which have been awarded Ramsar

site status.

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Driving employee engagement for a better community

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Developing people leadership

Our people: A force for good in the community

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Valuing diversity to achieve success

Best place to work Best place to bank

Child care

centre

Community BankingWork-life

balance

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Recognition for our leadership

Dow Jones Sustainability Index & FTSE4Good

2006 FT Sustainable Bank of the year

Rated ‘top bank’ on climate change governance

APEA Responsible Entrepreneurship Award 2008

(Brunei and Indonesia)

Best Company for Women Award 2007: Asia Pacific

China Charity Award

HK Government Top Award for Environmental

Excellence

Green Enterprise Grand Award (Hong Kong)

Ranked 1st in CSR: HSI Index listed companiesSustainability Awards & Ranking

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Teresa AuHSBC Head of Corporate Sustainability Asia Pacific Region