Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 109

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 109
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 impacts, as well asthe ongoing monitoring during theinvestment cycle. |

Banking Our banking business is well positioned to support our customers managing their own climate risk through financing. For our most material wholesale customers, we use our transition engagement questionnaire to understand clients’ climate strategies and risks. We have set out a suite of policies to guide our management of climate risk. We continue to develop our climate risk appetite and metrics to help manage climate exposures in our wholesale and retail portfolios. We use climate scenario analysis to gain insights into the long-term effects of transition and physical risks across our wholesale and retail portfolios (for further details, see page 253 ). Asset management HSBC Asset Management recognises that climate-related risks may impact the operational and financial performance of investee companies. The impact of these risks will vary depending on characteristics such as asset class, sector, business model and geography. HSBC Asset Management continues to integrate climate analysis into its actively managed product offerings and seeks to assess climate-related risks that could impact investment performance, where applicable and relevant . As part of its stewardship activities, HSBC Asset Management engages on climate change issues with investee companies on a priority list, as defined in its Stewardship Plan. HSBC Asset Management makes independent engagement decisions in the interests of its clients. Employee pensions The Trustee of the HSBC Bank (UK) Pension Scheme (‘the Scheme’), our largest plan with $34bn of assets under management, aims to achieve net zero greenhouse gas emissions across its defined benefit and defined contribution assets by 2050. To help achieve this, it is targeting an interim emissions reduction of 50% by 2030, from 2019 levels, for its equity and corporate bond mandates. This commitment was made in the context of wider efforts to manage the impact of climate change on the Scheme’s investments and the consequent impact on the financial interests of members. The Scheme reports its carbon emissions for its equity and corporate bond mandates in its annual TCFD Report and will seek to widen the coverage of its assessment and reporting over time. In line with the Trustee’s commitment to good stewardship, the Trustee engages its asset managers to ensure that financially material ESG risks are explicitly considered in the investment process. Insurance In 2024, our Insurance business enhanced our stress testing modelling capability to assess the solvency resilience of our Insurance entities under prescribed climate scenarios. For further details of the HSBC Asset Management’s Stewardship Plan, see: www.assetmanagement.hsbc.co.uk/en/ institutional-investor