Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 636

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 636
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isk on lending andfinancial intermediarybusiness (supplementalguidance for banks)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | –As part of our 2024 climate scenario analysis exercise, we completed a detailedretail mortgagerisk assessment forthe UK, US, Singapore and Malaysia. In our 2023 exercise we also assessed Hong Kong, Australia and mainlandChina. Our coverage represented 91% of the balances in our global retail mortgage portfolio, across the twoexercises. For our Hong Kong portfolio, we completed a short- and long-term scenario analysis exercise during late2023 and early 2024 at the request of the HKMA.Our analysis shows that over the longer term, we expect minimallosses to materialise when considering the Current Commitments scenario. | Page255            |
| –The impact on our wholesale portfolios is demonstrated by the tableon page255which shows the size of exposuresby sector in 2024 and the cumulative change in ECL compared with a counterfactual scenario (expressed as amultiple).The size of our exposure in each sector is represented by our exposure at default (‘EAD’) relative to oneanother.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Page255                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |
| –We do not fully disclose metrics used to assess the impact of climate-related physical (chronic) and transition (policy andlegal, technology and market) risks on retail lending, parts of wholesale lending and other financial intermediary businessactivities (specifically credit exposure, equity and debt holdings, or trading positions, broken down by industry,geography, credit quality and average tenor). We are aiming to develop the appropriate systems, data and processes toprovide these disclosures in future years. We disclose the exposure to six, high-transition risk wholesale sectors as aproportion of total wholesale loans and advances and the flood risk exposure and Energy Performance Certificate (‘EPC’)breakdown for the UK retail mortgage portfolio.                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |

| 472 | HSBC Holdings plcAnnual Report on Form 20-F |

Additional information

Task Force on Climate-related Financial Disclosures (‘TCFD’) continued

| Recommendation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Response                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Disclosurelocation |
| b) Disclose scope 1, scope 2 and, if appropriate, scope 3 greenhouse gas emissions and the related risks (Companies Act 2006 - Sections 414CA and414CB 2A (h))