Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 108

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 108
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 2019 and restated our 2023 supply chain metrics in line with our emissions re-baseline and restatement policy (see page 49 ). As referenced above, in 2024, we made the decision to amend the methodology. We also identified an error in the mapping of industry averages. In addition, we have identified an error in our 2019 metric disclosed in our ARA 2023 for total energy consumption, which we have now restated. We are conducting a review of our controls related to these items and aim to enhance them accordingly.

| 58 | HSBC Holdings plcAnnual Report on Form 20-F |

ESG review | Environment

Managing climate risk

| TCFD |

Climate risk relates to the financial and non- financial impacts that may arise as a result of climate change and the move to a net zero economy. We manage climate risk across all our businesses and are incorporating climate considerations within our traditional risk types in line with our Group-wide risk management framework. Our material exposure to climate risk relates to wholesale and retail client financing activity within our banking portfolio. We are also exposed to climate risk in relation to asset ownership by our insurance business and employee pension plans. Our clients are exposed to climate-related investment risk in our asset management business. In the table below, we set out our duties to our stakeholders in our four most material roles. For further details of our approach to climate risk, see ‘ESG risk’ on page 150 and ‘Climate risk’ on page 249 .

| BankingWe manage the climate risk in ourbanking portfolios through our riskappetite and policies for financialand non-financial risks. |     | Employee pensionsOur pension plans have fiduciariesto manage climate risk in line withtheir duties towards membersunder local regulatoryrequirements. |     | Asset managementClimate risk management is a keyfeature of our investment decisionmaking and portfolio managementapproach. |     | InsuranceWe consider climate risk in themanagement of our shareholderand policyholder portfolio ofassets.                                          |
| Climate risk                                                                                                                           |     |                                                                                                                                                       |     |                                                                                                                            |     |                                                                                                                                                    |
| This enables us to identifyopportunities to support ourcustomers, while continuing tomeet stakeholder expectations.                    |     | We monitor climate risk exposureinternally for our largest plansbased on asset sector allocationand carbon emissions data whereavailable.             |     | We also engage with companieson topics related to climatechange.                                                           |     | ESG factors are incorporated intoinvestment analysis to evaluateclimate risk