Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 635

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 635
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 | Page147                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                    |
| –This includes increasing coverage and incorporating more mature data, climate analytics, frameworks and tools, andresponding to emerging industry best practice and climate-related regulations.This also necessitates reflecting onhow climate risk continues to evolve in the real world, and improving how we embed climate risk factors into strategicplanning, transactions and decision making across our businesses.                                                            | Page249                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                    |

| HSBC Holdings plcAnnual Report on Form 20-F | 471 |

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

| Recommendation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Response                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Disclosurelocation |
| Metrics and targets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |
| a) Disclose the metrics used by the organisation to assess climate-related risk and opportunities in line with its strategy and risk management process(Companies Act 2006 - Sections 414CA and 414CB 2A (h))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |
| Metrics used to assessthe impact of climate-related risks on our loanportfolio                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | –We have metrics in place to monitor the exposure of our wholesale corporate lending portfolio to six high transitionrisk sectors. As at 31 December 2024, the overall exposure to the six high transition risk sectors was18% of totalgross carrying amount of wholesale loans and advances.                                                                                                                                                                                                                                                                                                                                                    | Page251            |
| –The UK is our largest mortgage market, and as of November 2024, made up 46.7% of our global mortgage portfolio.Our ESG Data Pack includes our climate risk exposures for this portfolio across regions. The maturity profile of the UKmortgage book shows that the average remaining contractual term in the UK is 21.8 years. However, with somecustomers undertaking refinancing options during this term, the average term of the mortgage can be reduced tobetween five and eight years. For the UK mortgage book, flood data is available for 93.7% of the mortgage book ofwhich0.9% is at a very high risk of flooding, with2.7% of the book at a high risk of flooding. We monitor the energyperformance certificate (‘EPC’) ratings of individual properties from A (highest efficiency) through to G (least efficient)as EPCs are commonly used as an indicator of transition risk in