Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 112

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 112
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 details of our oil and gas, power and utilities financed emissions target, see the ‘Targets and progress’ section in ‘Financed emissions’ on page 50 . For our thermal coal phase-out policy, see www.hsbc.com/-/files/hsbc/our-approach/risk- and-responsibility/pdfs/240125-hsbc-thermal- coal-phase-out-policy.pdf. Thermal coal financing exposures We aim to reduce thermal coal financing drawn balance exposure from a 2020 baseline by at least 25% by 2025, and aim to reduce it by 50% by 2030. Our basis of preparation for reporting on thermal coal financing drawn balance exposures is aligned with our thermal coal phase-out policy and applies a risk-based approach to reporting on relevant exposures. This includes the use of globally recognised third-party data sources to screen clients and applies materiality considerations to product type, customer type and exposure type, which informs inclusion and exclusion requirements. Specifically, for product types, short-term lending exposures are excluded from our thermal coal financing exposures reporting, in line with our financed emissions methodology. For customer types, exclusions are applied for certain customer types such as sovereigns and individuals. For exposure types, a threshold of $15m for drawn balances is applied for thermal coal financing exposures reporting. We recognise that we provide financing to groups of connected companies where the wider group has thermal coal exposures, and this introduces additional complexities when estimating thermal coal exposure. In such cases, we consider the nature and the extent of the connections and any restrictions on use of financing proceeds to fund the thermal coal activities. We continue to refine our basis of preparation and have made further enhancements in 2024 while taking into account experience from policy implementation over time. Applying our refined basis of preparation did not have a material impact on the thermal coal financing drawn balance exposure as of 31 December 2020. For further details of our Financed Emissions and Thermal Coal Exposures Methodology, see www.hsbc.com/who-we-are/esg-and- responsible-business/esg-reporting-centre. The chart below sets out our thermal coal financing drawn balance exposure for the 2020 baseline as well as the exposure figures for 2021 † and 2022 † , which were $1bn (rounded). We continue to work on our 2023 and 2024 numbers and expect to report on these in future disclosures.

| Thermal Coal Financing drawn balanceexposure1 |
| $bn                                           |

1 The reduction is based