Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 88

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 88
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 on page 251 . By estimating emissions and setting targets for customers that directly account for, or indirectly influence, the majority of emissions in each of the most carbon-emissive sectors, we can focus our engagement and resources where we believe the potential for change is highest. For each sector, our reported emissions now typically include all the major greenhouse gases, including carbon dioxide, methane and nitrous oxide, among others. These are reported as tonnes of CO 2 equivalent (‘ tCO 2 e’ ) . To calculate annual on-balance sheet financed emissions, we follow guidance from the Partnership for Carbon Accounting Financials (‘PCAF’) standard. We use drawn balances as at 31 December in the year of analysis related to wholesale credit and lending, including business loans and project finance, as the value of finance provided to customers. We excluded products that were short term by design and typically less than 12 months in duration to reduce volatility, having considered the PCAF guidance and subject matter expert opinions from the business. For facilitated emissions we considered all capital market transactions in scope for the year of analysis. These included debt and equity capital markets, and syndicated loans. For further details of our financed emissions methodology, exclusions, and limitations, see our Financed Emissions and Thermal Coal Exposures Methodology at www.hsbc.com/who- we-are/esg-and-responsible-business/esg- reporting-centre.

| HSBC Holdings plcAnnual Report on Form 20-F | 47 |

Financed emissions continued The chart below shows the scope of our financed emissions analysis of the seven sectors, including upstream, midstream, and downstream activities within each sector. The allocation of companies to different parts of the value chain is highly dependent on expert judgement and data available on company revenue streams. As data quality improves, this will be further refined.

| Sector                                                                                                                                                                                                                  | Scope ofemissions                   | Value chain in scope                     |                                                  |                           |                                           | Coverage ofgreenhousegases (‘GHGs’) |
| Oil and gas                                                                                                                                                                                                             | 1, 2 and 3                          | Upstream(e.g. extraction)                | Midstream(e.g. transport)                        | Downstream(e.g. fuel use) | Integrated/diversified                    | All GHGs                            |
| Power and utilities1                                                                                                                                                                                                    | 1 and 2                             | Upstream (e.g.generation)                | Midstream(e.g. transmission and distribution)    | Downstream(e.g. retail)   | Diversified utilities