Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 87

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 87
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 Funds.

| 46 | HSBC Holdings plcAnnual Report on Form 20-F |

ESG review | Environment

Embedding net zero

Financed emissions

| TCFD |

As part of our ambition to become a net zero bank by 2050, we published initial financed emissions targets for 2030. As we near the mid-point towards our 2030 targets, w e have begun a review of our interim 2030 financed emissions targets and associated policies as described on page 18 . This forms part of our annual net zero transition plan review referenced in our 3Q24 earnings release. Our analysis of financed emissions comprises ‘on-balance sheet financed emissions’ and ‘facilitated emissions’, which we distinguish where necessary in our reporting. Our on-balance sheet financed emissions include emissions related to on-balance sheet lending, such as project finance and direct lending. Our facilitated emissions include emissions related to financing we help clients to raise through capital markets activities. Our analysis covers financing from Global Banking and Markets, and Commercial Banking. Financed emissions link the financing we provide to our customers and their activities in the real economy, and provide an indication of the associated greenhouse gas emissions. They form part of our scope 3 emissions, which include emissions associated with the use of a company’s products and services. We have set combined on-balance sheet financed and facilitated emissions targets for two emissions-intensive sectors: oil and gas, and power and utilities. We have also set targets for on-balance sheet financed emissions for the following sectors: cement; iron, steel and aluminium; aviation; automotive; and thermal coal mining. As part of our financial reporting, we present the progress for these sectors against our published financed emissions baselines and targets . We have set absolute emissions reduction targets for the oil and gas, and thermal coal mining sectors. For the power and utilities; cement; iron, steel and aluminium; aviation; and automotive sectors, we have set emissions intensity targets that allow us to deploy capital towards decarbonisation solutions.

Our approach to financed emissions In our approach to assessing our financed emissions, our key methodological decisions were shaped in line with industry practices and standards. We recognise these are still developing. Coverage of our analysis Our analysis focuses on the most carbon- emissive sectors and the parts of the value chain where we believe the majority of emissions are produced, to help reduce double counting of emissions. This is different to the scope of sectors within the wholesale corporate lending portfolio that we use to manage climate risk. These sectors are set out