Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 634

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 634
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 considers short-term (up to 2026), medium-term (2027-2035) and long-term (2036-2050)periods.                                                                                                                                                                                                                         | Page249            |

| HSBC Holdings plcAnnual Report on Form 20-F | 467 |

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

| Recommendation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Response                                                                                                                                                                                                                                                                                             | Disclosurelocation |
| Transition or physicalclimate-related issuesidentified                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | –We aim to help our customers transition to net zero and a sustainable future by providing and facilitating between$750bn and $1tn of sustainable finance and investment by 2030.OurSustainable Finance and Investment DataDictionary 2024includes a detailed definition of contributing activities. | Page43             |
| –For transition risk, we have metrics in place to monitor the exposure of our wholesale corporate lending portfolio to sixhigh transition risk sectors. As at 31 December 2024, the overall exposure to six high transition risk sectors was18% oftotal gross carrying amount of wholesale loans and advances. Our relationship managers engage with our key wholesalecustomers, including those in higher transition risk sectors, through a transition engagement questionnaire (‘TEQ’). In2024, the TEQ was expanded to cover all geographies. The TEQ helps to gather information and assess our wholesalecustomers’ business model alignment to a net zero transition and their exposure to physical and transition risks. | Page251                                                                                                                                                                                                                                                                                              |                    |
| –The impact on our wholesale portfolios is demonstrated by the tableon page255which shows the size of exposures bysector in 2024 and the cumulative change in ECL compared with a counterfactual scenario (expressed as a multiple).The size of our exposure in each sector is represented by our exposure at default (‘EAD’) relative to one another.                                                                                                                                                                                                                                                                                                                                                                          | Page255                                                                                                                                                                                                                                                                                              |                    |
| –The tableon page256demonstrates the impact on ourcommercial real estate (‘CRE’)portfolio for specific markets,including the three biggest markets – Hong Kong, the UK and the US. Thisshows the increase in cumulative ECL overdifferent time horizons, under each scenario, compared with a counterfactual scenario (expressed as a multiple).                                                                                                                                                                                                                                                                                                                                                                                | Page256                                                                                                                                                                                                                                                                                              |                    |
| –We measure the impacts of climate and weather events on our buildings on an ongoing basis using historical, currentand scenario-modelled forecast data. In 202