Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 95

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 95
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 economy. Our baseline and progress figures reflect combined on-balance sheet financed and facilitated emissions. We target a combined on-balance sheet financed and facilitated emissions intensity of 138 tonnes of carbon dioxide equivalent per gigawatt hour (‘tCO 2 e/GWh’) by 2030. We have chosen an intensity-based target as electricity demand is expected to more than double by 2050, due to both population growth and electrification required to decarbonise mobility, buildings and industry. Our target is consistent with a global 1.5°C- aligned pathway, as defined by the IEA NZE 2021 scenario. We show in the chart our progress to date against our 2030 target. We also indicate the 2030 figure of 194.6 tCO 2 e/GWh derived from the updated IEA NZE 2024 scenario. In 2023, the combined on-balance sheet financed and facilitated emissions intensity in our portfolio decreased by 32% to 349.0 tCO 2 e/GWh relative to the 2019 baseline, and by 12% from 2022 to 2023. This reduction was driven by an increase in the financing of renewable energy projects and companies, and a decrease in the financing of high emissions intensity clients.

| Power and utilitiestCO2e/GWh | 2023 progressfrom baseline |
|                              | (32)%                      |

| 52 | HSBC Holdings plcAnnual Report on Form 20-F |

ESG review | Environment

Financed emissions continued Cement For the cement sector, our analysis included scope 1 and 2 emissions for midstream companies with clinker and cement manufacturing facilities. We target an on-balance sheet financed emissions intensity of 0.46 tonnes of carbon dioxide equivalent per tonne of cement (‘tCO 2 e/t cement’) by 2030, using 2019 as our baseline. Our target is consistent with a global 1.5°C-aligned pathway, as defined by the IEA NZE 2021 scenario. We show in the chart our progress to date against our 2030 target. We also indicate the 2030 figure of 0.47 tCO 2 e/t cement derived from the updated IEA NZE 2024 scenario. While some emissions reductions can be achieved through energy efficiency, we believe that to significantly reduce fuel and process emissions from cement manufacturing, and to meet our targets, large-scale investments are required in new production processes and technologies