Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 78

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 78
---
 the way we calculatefinanced emissions for our automotiveclients. In addition, we identified errorsin both the thermal coal mining andaviation sectors, including errors inlending product codes. These changeshave resulted in a25%decrease inemissions reported for automotive and a30%increase in emissions reported foraviation in 2022 figures, and a18%increase in emissions reported forthermal coal mining in the 2020 baselinefigure on an absolute financedemissions basis. For further details, seepage49.–Thermal coal exposure: we continue torefine our basis of preparation and havemade further enhancements in 2024.For further details, see page60.–Supply chain emissions: we haverestated our supply chain emissions dueto revisions in our methodology and anerror in the mapping of industry averages.This has resulted in a25%increase toour 2019 baseline emissions and a2%increase to our 2023 reported emissions.For further details, see page57.–Asset management financed emissions2019 baseline: we have re-baselined our2019 intensity figure due to an error inthe issuer mapping and is now 124tCO2e/M$ invested versus 131 tCO2e/M$ invested reported in the AnnualReport and Accounts 2022.For furtherdetails, see page55.–Energy consumption: We have restatedour 2019 metric for total energyconsumption due to an error. For furtherdetails, see page57 |

| 42 | HSBC Holdings plcAnnual Report on Form 20-F |

ESG review | Environment

| Explaining scope 1, 2 and 3 emissions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| To measure and manage our greenhouse gasemissions, we follow the Greenhouse Gas Protocolglobal framework, which identifies three scopesof emissions. Scope 1 represents the directemissions we create. Scope 2 represents theindirect emissions resulting from the use ofelectricity and energy to run a business. Scope 3represents indirect emissions attributed to upstreamand downstream activities. Our upstream activitiesinclude business travel and emissions from oursupply chain including transport, distribution andwaste. Our downstream activities include thoserelated to investments and including financedemissions.Under the protocol, scope 3 emissions are alsobroken down into 15 categories, of which weprovide reporting emissions data for three relatedto upstream activities. These are: purchased goodsand services (category 1); capital goods (category 2);and business travel (category 6).