Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 73

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 73
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 of our TCFD disclosures, see the ‘ESG review‘ on page 466 . Climate stress tests Scenario analysis supports our strategy by assessing our potential exposures to climate risks and vulnerabilities under a range of climate scenarios. Scenario analysis helps to build our awareness of climate change, understand plausible impacts to our strategy, plan for the future and meet our growing regulatory requirements. In 2024, we enhanced our internal climate scenario analysis exercise by focusing our efforts on generating more granular insights for key sectors and regions to support core decision-making processes. We also continued to embed climate considerations into core processes across the Group and to respond to our regulatory requirements. Additionally, we produced several climate stress tests for regulators around the world, including the Hong Kong Monetary Authority. For further details of our approach to climate risk stress testing, see ‘Insights from scenario analysis’ on page 253 . Our operations We remain committed to investing in the reliability and resilience of our technology systems and critical services. We assess our third parties to help ensure they deliver the standard of services we require to provide resilient services to our customers. We do so to help protect our customers, affiliates and counterparties, and minimise any disruption to our services. In our approach to defending against these threats, we invest in business and technical controls to help us prevent, detect, manage and recover from issues in a timely manner within our risk appetite. We are working to balance the opportunity artificial intelligence (‘AI’) presents to accelerate delivery of our strategy with the need for appropriate controls to be in place to mitigate the associated risks. HSBC is committed to using AI responsibly. HSBC’s Principles for the Ethical Use of Data and AI are available at www.hsbc.com/ai. We continue to refine and embed governance and controls into our risk management processes to help meet the Group’s needs and increasing regulatory expectations for when AI is both developed internally and enabled through third parties. We continue to focus on improving the quality and timeliness of the data used to inform management decisions, and are progressing with the implementation of our strategic and regulatory change initiatives to help deliver the right outcomes for our customers, people, investors and communities. For further details of our risk management framework and risks associated with our banking and insurance manufacturing operations, see pages 167 and 261 , respectively.

| 38 | HSBC Holdings plcAnnual Report on Form 20-F |

Strategic Report

Top and emerging risks Our top and emerging risks report identifies forward-looking risks so that they can be considered in determining whether any incremental action is needed to either