Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 89

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 89
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 numbers) to track progress to our combined target. This means that transactions facilitated in 2028 and 2029 will still have an impact on the 2030 progress num ber and will need to be taken into consideration as we manage progress towards our target. Our approach for financed emissions accounting does not rely on purchasing credits to achieve any financed emissions targets we set. An evolving approach In the upcoming review of our financed emissions targets, we will seek to balance being ambitious on net zero while recognising present near-term global challenges and the associated impact of the transition playing out differently across the regions and sectors we serve. In doing so, we plan to draw on the latest scientific evidence and credible industry-specific pathways while, at the same time, maintaining our commitment under our 2021 Climate Resolution. Other sector updates For the agricultural sector, due to ongoing data challenges, we are not in a position to report our financed emissions or set a target at this time. For commercial real estate, we continue to work towards outlining our financed emissions ambition. For residential real estate, we continue to expect to measure and report our financed emissions in future disclosures.

| 48 | HSBC Holdings plcAnnual Report on Form 20-F |

ESG review | Environment

Financed emissions continued Data and methodology limitations Our financed emissions estimates and methodological choices are shaped by the availability of data for the sectors we analyse. We are members of the PCAF, which defines and develops greenhouse gas accounting standards for financial institutions. Its Global GHG Accounting and Reporting Standards for Financed Emissions and for Facilitated Emissions provide detailed methodological guidance to measure and disclose financed and facilitated emissions. – We have found that data quality scores vary across the different sectors and years of our analysis. While we expect our data quality scores to improve over time, as companies continue to expand their disclosures to meet growing regulatory and stakeholder expectations, there may be fluctuations within sectors year-on-year, and/or differences in the data quality scores between sectors due to changes in data availability. – The majority of our clients do not yet report the full scope of greenhouse gas emissions included in our analysis, in particular scope 3 emissions at a subsidiary level. In the absence of client-reported emissions, we estimated emissions using proxies based on company production and revenue figures. Although we sought to minimise the use of non-company-specific data, we applied industry averages in our analysis where company-specific data was unavailable through our third-party datasets. As data improves, estimates will be replaced with reported figures. – Third-party datasets that feed into our