Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 344

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 344
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| Net zero reportingrisk         | Failing to report emissions baselines and targets, and performance against these accurately due to data, methodologyand model limitations.                                                                                                                                            |                                                                                                                                                                                       |
| Risk ofgreenwashing            | Firm                                                                                                                                                                                                                                                                                  | Making inaccurate, unclear, misleading or unsubstantiated claims in relation to our sustainability commitments andtargets, as well as the reporting of our performance towards them.  |
| Product                        | Making inaccurate, unclear, misleading or unsubstantiated claims in relation to products or services offered to clientsthat have stated sustainability objectives, characteristics, impacts or features.                                                                              |                                                                                                                                                                                       |
| Client                         | Making inaccurate, unclear, misleading or unsubstantiated claims as a consequence of our relationships with clients ortransactions we undertake with them, where their sustainability commitments or related performance aremisrepresented or are not aligned to our own commitments. |                                                                                                                                                                                       |

Our annual climate risk materiality assessment helps us to understand how climate risk may impact HSBC’s risk taxonomy. The assessment considers short-term (up to 2026), medium-term (2027-2035) and long-term (2036-2050) periods. The table below provides a summary of how climate risk may impact a subset of HSBC’s principal risks. In addition to this assessment, we also consider climate risk in our emerging risk reporting and scenario analysis (for further details, see ‘Top and emerging risks’ on page 38 ).

| Climate risk drivers | Credit risk | Traded risk | Reputational risk1 | Regulatorycompliance risk1 | Resilience risk | Other financialand non-financial risktypes |
| Physical risk        | u           | u           |                    |                            | u               | u                                          |
| Transition risk      | u           | u           | u                  | u                          | u               | u                                          |

1 Our climate risk approach identifies thematic issues such as net zero alignment risk and the risk of greenwashing, which are most likely to materialise in the form of reputational, regulatory compliance and litigation risks.

Climate risk management Key developments in 2024 Our climate risk programme continues to support the development of our climate risk management capabilities. The following outlines key developments in 2024 : – We have started to enhance our approach to managing net zero alignment risk in our wholesale portfolio, through developing portfolio steering capabilities and revenue assessments. – We enhanced our approach to assessing the impact of climate change on capital, focusing on credit, market and operational risk . – W e enhanced our internal climate scenario