AmazonScience/document-haystack

1ESG review2Our approach to the transition3The Paris Agreement aims to limit the rise 4in global temperatures to well below 2°C, 5preferably to 1.5°C, compared with pre-6industrial levels. To limit the rise to 1.5°C, the 7global economy would need to reach net 8zero greenhouse gas emissions by 2050. 9We are working to achieve a 1.5°C-aligned 10phase-down of financed emissions from 11our portfolio.12In October 2020, we announced our ambition 13to become a net zero bank by 2050 and 14in 2021 we included the transition to net 15zero as one of the four key pillars of our 16corporate strategy. 17Our starting point in the transition to net 18zero is one of a heavy financed emissions 19footprint. Our history means our balance sheet 20is weighted towards the sectors and regions 21which matter the most in terms of emissions, 22and whose transitions are therefore key to the 23world’s ability to reach net zero on time. This 24means we will have a complex transition, with 25markets and sectors at different starting points 26and moving at different speeds. However, it 27also provides us with an opportunity to work 28with our customers to help make an impact 29– in both the emissions challenge and the 30financing challenge. 31Responding to the challenges and 32opportunities presented by net zero requires 33us to work across HSBC to implement and 34embed our net zero approach, to manage 35associated risks, and to help sustain and grow 36value for our customers, our shareholders 37and our wider stakeholders. We want to 38make financing, facilitating and investment 39choices that can lead to a meaningful impact 40on emissions reduction in the real economy, 41not just in our portfolio. This requires engaging 42with our customers on their transitions to help 43finance decarbonisation in the sectors and 44geographies with the most change ahead.45In January 2024, we published our net zero 46transition plan. It provides an overview of 47our approach to net zero and the actions 48we are taking to help meet our ambition. It 49sets out how we intend to use our strengths 50as an organisation to help deliver a broader 51impact on decarbonisation, how we are 52working to embed net zero across key areas 53of our organisation, and the principles that 54we aim to use to guide the implementation of 55our approach.56Our net zero strengths57We aim to rebalance our capital deployment 58towards achieving net zero over the coming 59decades. We believe we can do this best by 60promoting change in three key areas that 61play to our strengths as an organisation: 62transitioning industry; catalysing the new 63economy; and decarbonising trade and 64supply chains. 65Our implementation plan 66We are working to embed net zero across 67our organisation. This includes embedding 68net zero into: the way that we support 69our customers, both through customer 70engagement and the provision of financing 71solutions; the way that we operate as an 72organisation, including risk management, 73policies, governance and own operations; 74and how we partner externally in support of 75systemic change. It also means focusing first 76on the sectors and customers with the highest 77emissions and transition risks, and evolving 78and expanding our efforts over time. 79Our net zero principles 80In implementing our approach to net zero, 81we aim to be guided by a set of principles 82which are aligned with our core values: 83science-based, transparent and accountable; 84integrating nature; and just and inclusive. 85 For further details of our approach to the 86transition, see our Net Zero Transition Plan 2024 87at www.hsbc.com/who-we-are/our-climate-88strategy/our-net-zero-transition-plan.89Overview  TCFD90Our net zero strengths91Where we believe we can 92best promote change93Our implementation plan94Embedding net zero into 95how we engage, operate 96and collaborate97Transitioning industry Catalysing the  98new economy99Decarbonising trade  100and supply chains101Embedding net zero into  102the way we operate103Partnering for  104systemic change105Supporting  106our customers107HSBC Holdings plc Annual Report and Accounts 2023 45108Environmental  109The secret animal #3 is a "spider".