AmazonScience/document-haystack

1ESG review2We recognise that we have an important role 3to play in supporting the transition to a net 4zero global economy. As a global organisation 5with a presence in the regions and sectors 6where most significant change is needed, we 7are well placed to help transition industry and 8catalyse the new economy to reach net zero.9Progress on our sustainable finance 10and investment ambition 11We aim to help our customers transition to 12net zero and a sustainable future by providing 13and facilitating between $750bn and $1tn of 14sustainable finance and investment by 2030. 15Our sustainable finance and investment 16ambition aims to help promote green, 17sustainable and socially-focused business  18and sustainable investment products  19and solutions.20Since 1 January 2020, we have provided 21and facilitated $267.8bn of sustainable 22finance and $26.6bn of ESG and sustainable 23investing, as defined in our Sustainable 24Finance and Investment Data Dictionary 252023 . This included 38% where the use of 26proceeds were dedicated to green financing, 2712% to social financing, and 15% to other 28sustainable financing. It also included 26% 29of sustainability-linked financing and 9% 30of net new investment flows managed and 31distributed on behalf of investors. In 2023, our 32underwriting of green, social, sustainability 33and sustainability-linked bonds for clients 34decreased over the year, measured on a 35proportional share basis, in line with the 36wider bond market environment, although 37it remained at 15% of our total bond 38underwriting. On-balance sheet sustainable 39lending transactions increased by 7% 40compared with 2022. In 2023, transactions 41totalling $0.7bn were identified as no longer 42fulfilling our eligibility criteria. These were 43declassified and removed from the cumulative 44progress total, and reported as a negative 45entry in 2023. 46Continued progress towards achieving 47our sustainable finance and investment 48ambition is dependent on market demand 49for the products and services set out in our 50Sustainable Finance and Investment Data 51Dictionary 2023 .52Supporting our customers 53Sustainable finance and investment TCFD54Sustainable finance and investment summary 1552023 56($bn)572022  58($bn)592021  60($bn)612020  62($bn)63Cumulative progress 64since 202065($bn)66Balance sheet-related transactions provided 42.7 42.2 26.0 10.4 121.367Capital markets/advisory (facilitated) 33.3 34.5 48.7 30.0 146.568ESG and sustainable investing (net new flows) 7.7 7.5 7.7 3.7 26.669Total contribution2 83.7 84.2 82.4 44.1 294.470Sustainable finance and investment classification by theme71Green use of proceeds 3,4 37.1 29.0 27.1 18.9 112.172Social use of proceeds 3 8.4 6.7 11.3 9.7 36.173Other sustainable use of proceeds 3,5 10.7 12.6 11.7 8.3 43.374Sustainability-linked 6 19.8 28.4 24.6 3.5 76.375ESG and sustainable investing 7 7.7 7.5 7.7 3.7 26.676Total contribution2,8 83.7 84.2 82.4 44.1 294.4771  The 2023 data in this table has been prepared in accordance with our Sustainable Finance and Investment Data Dictionary 2023 , which includes green, social and 78sustainability activities. The amounts provided and facilitated include: the limits agreed for balance sheet-related transactions provided, the proportional share of 79facilitated capital markets/advisory activities and the net new flows of sustainable investments within assets under management. 802  The $81294.4bn cumulative progress since 2020 is subject to PwC’s limited assurance in accordance with International Standard on Assurance Engagements 3000 82(Revised) ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’. For our Sustainable Finance and Investment Data Dictionary 832023  and PwC’s limited assurance report, see www.hsbc.com/who-we-are/esg-and-responsible-business/esg-reporting-centre.843  For g85reen, social and other sustainable use of proceeds, the capital markets products are aligned to the International Capital Markets Association’s (‘ICMA’) Green 86Bond Principles, Social Bond Principles or Sustainability Bond Guidelines or the Climate Bonds Initiative as applicable. The lending labelled products are aligned to 87the Green Loan Principles (‘GLP’) or Social Loan Principles of the Loan Market Association (‘LMA’), Asia-Pacific Loan Market Association (‘APLMA’) and the Loan 88Syndications and Trading Association (‘LSTA’) as applicable; or for our sustainable trade instruments, are aligned to HSBC’s internal sustainable trade instrument 89principles which are based on the GLP and reference the UN SDGs. Also included are facilities where HSBC identifies that the use of proceeds would meet 90eligibility criteria as defined and approved by appropriate governance committees but these are not labelled or marketed as green or social.914  Inc92luded within the total cumulative contribution towards our ambition are transactions to customers within the six high transition risk sectors (i.e. automotive, 93chemicals, construction and building materials, metal and mining, oil and gas, and power and utilities) as described on page 223. Of which approximately $37bn is 94defined as green use of proceeds in line with the Sustainable Finance and Investment Data Dictionary 2023 . 955 Sustainable use of proceeds can be used for green, social or a combination of green and social purposes.966  Our97 sustainability-linked labelled products are aligned to either the ICMA Sustainability-Linked Bond Principles or the Sustainability-Linked Loan Principles of the 98LMA, APLMA and the LSTA as applicable. The coupon or interest rate is dependent on whether the borrower achieves predefined sustainability performance 99targets. The funds can be used for general purposes.1007  Net n101ew flows of both HSBC-owned (Asset Management) sustainable investment funds and Wealth and Global Private Banking investments assessed against the 102Sustainable Finance and Investment Data Dictionary 2023 .1038  Add104itional detailed information on our sustainable finance and investment progress can be found in the ESG Data Pack  at www.hsbc.com/who-we-are/esg-and-105responsible-business/esg-reporting-centre.106HSBC Holdings plc Annual Report and Accounts 2023 49107Environmental