Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 110

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 110
---
/about-us/responsible- investing/-/media/files/attachments/uk/policies/ stewardship-plan-uk.pdf For further details of the HSBC Bank (UK) Pension Scheme’s annual TCFD statements and UK Stewardship Code submission, see https:// futurefocus.staff.hsbc.co.uk/active-dc/ information-centre/search-documents

| HSBC Holdings plcAnnual Report on Form 20-F | 59 |

Sustainability risk policies

| TCFD |

Our sustainability risk policies form part of our broader risk management framework and are important mechanisms for managing risks, including delivering our net zero ambition. These policies focus on mitigating reputational, credit, legal and other risks related to our customers’ environmental and social impacts. Our policies Our sustainability risk policies comprise our core net zero-aligned policies – thermal coal phase-out and energy – and our broader sustainability risk policies covering: agricultural commodities, forestry, mining and metals, and World Heritage Sites and Ramsar-designated wetlands. We also apply the Equator Principles when financing relevant projects . These policies aim to provide clear signals to our customers on our risk appetite for certain activities . We continue to review policy implementation as we apply our sustainability risk policies in practice, and our operationalisation of such policies continues to be enhanced. We take a risk-based approach when identifying transactions and clients to which our sustainability risk policies apply and, where relevant, when reporting on relevant exposures, adopting approaches proportionate to risk and materiality. This helps to focus our efforts on areas where we believe we can help drive meaningful change, while taking into account experience from policy implementation over time. We regularly review our policies, incorporating feedback and building on experience from policy implementation over time . We have begun a review of our interim financed emissions targets and associated policies as part of the annual review of our net zero transition plan that we referenced in our 3Q24 earnings release in October. For clients in scope of our sustainability risk policies, where we identify activities that could cause material negative impacts, we expect clients to demonstrate that they are identifying and mitigating risks responsibly and will look to take required actions as outlined in our policies. This may, as appropriate, include conducting enhanced due diligence or applying financing restrictions. Such instances may require additional review and approval by our sustainability risk specialists and risk committees. For further details of how we manage sustainability risk, as well as our full policies, see www.hsbc.com/who-we-are/esg-and- responsible-business/managing-risk/ sustainability-risk Governance and implementation Our Group Risk and Compliance