AmazonScience/document-haystack

1Sustainable finance and investment continued TCFD2Unlocking climate solutions 3and innovation4We recognise the need to find new solutions 5and increase the pace of change for the world 6to achieve the Paris Agreement goal of being 7net zero by 2050. 8We are working with a range of partners 9to accelerate investment in sustainable 10infrastructure, natural resources and climate 11technology to help reduce emissions and 12address climate change.13Sustainable infrastructure14Addressing climate change requires the 15rapid development of a new generation of 16sustainable infrastructure.17HSBC continues to support the FAST-Infra 18Initiative, which we helped conceive, working 19with the IFC, OECD, the World Bank’s Global 20Infrastructure Facility and the Climate Policy 21Initiative, under the auspices of the One 22Planet Lab. In 2023, the initiative, which aims 23to mobilise large-scale financing to develop 24sustainable infrastructure, invited pilot 25photovoltaic and wind power projects around 26the world to apply for the provisional FAST-27Infra label. The label is awarded to projects 28that meet specific sustainability criteria. HSBC 29is supporting the introduction and widespread 30adoption of the labelling system as a standard 31for sustainable infrastructure assets globally.32Label applicants included a solar photovoltaic 33project submitted by Pentagreen Capital, 34our sustainable infrastructure debt financing 35partnership with Singapore-based investment 36firm Temasek. The project sponsor was 37Citicore Solar Energy Corporation, a subsidiary 38of the Philippines-focused renewable energy 39developer and operator Citicore Renewable 40Energy Corporation. Pentagreen acted as 41lead arranger of a $100m green loan facility 42and committed an initial $30m to help 43fund Citicore’s development of six solar 44power projects capable of generating 490 45megawatts of electricity for the island of 46Luzon in the Philippines. The commitment 47marks Pentagreen’s first investment in 48the construction of ready-to-build clean 49energy projects.50In 2023, the Multilateral Investment Guarantee 51Agency of the World Bank Group issued HSBC 52Holdings a guarantee of $1.8bn in regulatory 53capital relief on mandatory reserves held by 54its subsidiary in Mexico. The benefits of the 55capital relief are expected to be deployed to 56exclusively support eligible climate finance 57projects in Mexico, including renewable 58energy, energy efficiency, clean transportation 59and sustainable agriculture.60The HSBC Alternatives business, part of HSBC 61Asset Management, continued to develop its 62energy transition infrastructure capabilities 63in Asia, targeting investments in renewable 64energy generation, storage, grids, charging 65and hydrogen infrastructure. To help support 66the transition to green energy in North Asia, 67the energy transition infrastructure strategy 68made its first investment in solar photovoltaic 69power project developer Tekoma Energy.70Natural capital as an emerging 71asset class72Climate Asset Management, a joint venture 73we launched with climate investment and 74advisory firm Pollination in 2020, continues to 75create investment opportunities for investors 76to help protect biodiversity and support the 77transition to net zero.78It offers two investment strategies that 79aim to build resilience across landscapes 80while generating returns. Its nature-based 81carbon strategy targets nature restoration 82and conservation projects in developing 83economies, prioritising community benefits 84while generating high-quality carbon 85credits. Its natural capital strategy invests in 86agriculture, forestry and environmental assets 87and aims to deliver impact at scale alongside 88long-term financial returns.89On behalf of these strategies in 2023, Climate 90Asset Management allocated more than $400m 91to projects in Kenya, Uganda, Malawi, Spain, 92Australia and Portugal.93Backing new technology  94and innovation95At the COP28 Summit in the UAE, HSBC 96pledged its support for the Energy 97Transition Accelerator Financing Platform, 98which aims to scale up the development 99of renewable energy projects in 100developing countries. Established 101in 2021 with initial support from the 102Abu Dhabi Fund for Development and 103the International Renewable Energy 104Agency, the platform brings together 105public and private institutions. HSBC 106signed alongside the European Bank for 107Reconstruction and Development, the 108International Finance Corporation and 109the Multilateral Investment Guarantee 110Agency. We will work with platform 111partners to expand the pipeline of 112investable projects in core HSBC markets, 113including in Asia and the Middle East, 114bringing financing solutions that support 115the transition to net zero. 116We also became a founding member 117of the Global Climate Finance Centre, a 118newly launched UAE-based think tank 119created to connect public and private 120finance to help accelerate the transition 121to net zero.122HSBC Alternatives made direct 123investments in assets that help to 124promote the transition to a net zero 125climate. The venture capital strategy 126invests across four themes: power 127transformation, transport electrification, 128supply chain sustainability and climate 129risk mitigation. The strategy raised 130additional funds from institutional and 131private wealth clients over the course 132of 2023. As of 31 December 2023, the 133strategy had deployed capital into eight 134start-up companies. These included 135US-based Electric Era, which provides 136electric vehicle fast-charging technology, 137and Israel-based SeeTree, which has 138developed a software platform that tracks 139the health and productivity of trees. 14052 HSBC Holdings plc Annual Report and Accounts 2023141ESG review | Environmental The secret instrument is a "violin".