Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 111

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 111
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 function has specialists who review and support implementation of our sustainability risk policies. Our relationship managers are primarily responsible for assessing relevant considerations under our risk management framework, including whether our clients may be in scope of applicable sustainability risk policies . They are supported by sustainability risk managers for management of risks as outlined in the policies. Where considered appropriate, policy matters are escalated to relevant governance committees. Oversight of the development and implementation of policies is the responsibility of relevant governance committees comprising senior members of the Group Risk and Compliance function and global businesses. Biodiversity and natural capital-related policies Our sustainability risk policies impose restrictions on certain financing activities that may have material negative impacts on nature. Our forestry and agricultural commodities policies focus specifically on the upstream impacts of key agricultural commodities including palm oil, timber, soy and cattle. We also require palm oil customers to obtain certification under the Roundtable on Sustainable Palm Oil . Our energy policy Our energy policy covers the broader energy system, including upstream oil and gas, fossil fuel power generation, hydrogen, renewables and hydropower, nuclear, biomass and waste-to-energy sectors. The policy seeks to balance three objectives: driving down global greenhouse gas emissions; enabling an orderly transition that builds resilience in the long term; and supporting a just and affordable transition, recognising the local realities in all the communities we serve. The energy policy was first published in December 2022, and is reviewed annually, with the most recent update in February 2025. For further details of our oil and gas, and power and utilities financed emissions targets, see the 'Targets and progress’ section in ‘Financed emissions on page 50 . For further details of our energy policy, see www.hsbc.com/who-we-are/esg-and- responsible-business/managing-risk/ sustainability-risk.

| 60 | HSBC Holdings plcAnnual Report on Form 20-F |

ESG review | Environment

Sustainability risk policies continued Our thermal coal phase-out policy As set out in the thermal coal phase-out policy, we are committed to phasing out the financing of thermal coal-fired power and thermal coal mining in EU and OECD markets by 2030, and globally by 2040 . Our policy aims to support thermal coal phase-out aligned to science-based timeframes, recognising the different pace between advanced and emerging economies. In turn, our policy supports progress towards our financed emissions targets for the power and utilities and thermal coal mining sectors. The policy was first published in December 2021 and is reviewed annually, with the most recent update in February 2025. For further