Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 76

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 76
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 forscaling net zero solutions in the geographies most impacted by climate change. | Page45 |
| Embedding netzero                 | Financed emissions                                                                                                                                                                                                             | We aim to align our financed emissions to achieve net zero by 2050.                                                                                           | Page46 |
| Net zero in our ownoperations     | We aim to achieve net zero in our own operations, travel and supply chain by2050, in line with our overarching net zero ambition.                                                                                              | Page56                                                                                                                                                        |        |
| Managing climate risk             | We manage climate risk across our businesses in line with our Group-wide riskmanagement framework and continue to enhance our stress testing andscenario analysis capability to identify and understand climate-related risks. | Page58                                                                                                                                                        |        |
| Sustainability risk policies      | Our sustainability risk policies help to set out our appetite for financing andadvisory activities in certain sectors.                                                                                                         | Page59                                                                                                                                                        |        |

| HSBC Holdings plcAnnual Report on Form 20-F | 41 |

Understanding our climate reporting Continuing to evolve our climate disclosures We engage with standard setters to support the development of transparent and consistent climate-related industry standards in areas such as product labelling, sustainability disclosures, sustainable finance taxonomy and emissions accounting. In 2025, we will continue to review and enhance our approach to disclosures. Internal and external data challenges The effective measurement, governance and reporting of progress against our climate ambitions relies heavily on the availability and quality of both internal and external data. Newer data sources and topics may be difficult to assure using traditional verification techniques. This, coupled with diverse external data sources and complex structures, further complicates data consolidation. Our internal data on customer groups that was used to source financial exposure and emissions data, is based on credit and relationship management factors and is not always aligned with the need to analyse emissions across sector value chains. This can result in inconsistencies in our financed emissions calculations. We continue to invest in the development of data and analytics capabilities to support our transition. This includes sourcing more reliable data from external providers. We are also developing our processes, systems, controls and governance to meet the demands of future ESG reporting. Given our dependency on collecting emissions data from our clients and the manual nature of the process, enhanced verification and assurance procedures are performed on a sample basis over this data, including the first and second lines of defence. Our climate models undergo independent review by an internal model review group, and we obtain limited assurance on our financed emissions and sustainable finance disclosures from external parties, including our external auditors. Policies and