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1Strategic report2ESG highlights3Transition to net zero4 – In Ja5nuary 2024, we published our first net6zero transition plan, which is an important7milestone in our journey to achieving our8net zero ambition – helping our people,9customers, investors and other stakeholders10to understand our long-term vision,11the challenges, uncertainties and12dependencies that exist, the progress13we are making and what we plan to do14in the future. The plan includes details15on our sectoral approach, and on our16implementation plan to embed net zero17across key areas of our organisation.18 – Our n19et zero transition plan provides an20overview of the progress we have made to21date and what we plan to do next, although22we acknowledge there is still much23more to do. It will form the basis of further24work on our journey to net zero over time,25and we expect to review and update26it periodically.27 – Fol28lowing the recent launch of the29Partnership for Carbon Accounting30Financials (‘PCAF’) accounting standard31for capital markets, we have now set32combined on-balance sheet financed33emissions and facilitated emissions34targets for two emissions-intensive35sectors: oil and gas, and power and36utilities, and report the combined progress37for both sectors. We recognise that data,38methodologies and standards for measuring39emissions and for target setting will40continue to evolve.41 – Sin ce 2020, we have provided and42facilitated $294.4bn of sustainable43finance and investment, which was an44increase of $83.7bn in the past year. Of our45sustainable finance and investment progress46to 31 December 2023, $258.3bn related to47green and sustainable activities and $36.1bn48related to social activities.49 – With50in our own operations, we have51made a 57.3% reduction in our absolute52greenhouse gas emissions from a532019 baseline.54Build inclusion and resilience55 – In 205623, 34.1% of senior leadership57roles were held by women. We have58a target to achieve 35% by 2025, which59we are on track to achieve, although we60recognise that progress in the past year61has not been as fast paced as we would62like. We also continued to work towards63meeting our ethnicity goals.64 – We co65ntinue to make the banking66experience more accessible in both67physical and digital spaces. We are68working to ensure that our digital channels69are usable by everyone, regardless of ability.70We also expanded our efforts to support71customers with disabilities in our72branch spaces.73Act responsibly74 – We ai75m to be a top-three bank for customer76satisfaction. In 2023, we were ranked as a77top three bank against our competitors78in 58% of our six key markets across79Wealth and Personal Banking and80Commercial Banking, but we still have81work to do to improve our rank position82against competitors.83 – We pu84blished guides to help our buyers85and our suppliers better understand86our net zero ambitions. The guides87provide further details to support suppliers88in understanding our sustainability89expectations, as set out in our supplier code90of conduct.91 – We co92ntinued to raise awareness and93develop our understanding of our salient94human rights issues. In 2023, we95provided practical guidance and96training, where relevant, to our colleagues97across the Group, on how to identify and98manage human rights risk.99Strategic transactions100 – During 2023, we continued to acquire101bu102sinesses that allow us to build scale and103enhance our capabilities. In March, we104acquired SVB UK, and subsequently105launched HSBC Innovation Banking,106which includes SVB UK and new teams in107the US, Hong Kong and Israel, as well as in108Denmark and Sweden, to deliver a globally109connected, specialised banking proposition110to support innovation businesses and111their investors.112 – As pa113rt of our ambition to be a leading114wealth provider in Asia, we entered into an115agreement to acquire Citi’s retail wealth116management portfolio in mainland117China. This acquisition comprised the118assets under management and deposits,119and the associated wealth customers. We120also announced a partnership with the121fintech Tradeshift to launch a joint122venture focusing on embedded 123finance solutions and financial  124services applications. 125 – We co126ntinue to make good progress on127our strategic disposals. The planned sale128of our banking business in Canada received129government approval and is expected to130complete in the first quarter of 2024. We131completed the sale of our retail banking132operations in France on 1 January 2024, as133we reshape the organisation to focus on our134international customer base. In addition, we135announced the planned sale of our retail136business in Mauritius, and also completed137the sale of our operations in Greece, the138merger of HSBC Bank Oman with Sohar139International, and the sale of our New140Zealand retail mortgage loan portfolio.141 – Whi142le we remain committed to the sale of143our business in Russia, the sale became less144certain. As a result, the business is no longer 145classified as held for sale, the previously 146recognised loss has been reversed, and 147a broadly offsetting charge relating to 148recoverability was recognised in the fourth 149quarter of 2023.150 – We r151emain committed to consider152the payment of a special dividend of153$0.21 per share as a priority use of the154proceeds from the sale of our banking155business in Canada in the first half of1562024. The remaining proceeds will accrue157into CET1 capital in consideration for organic158growth and investment, and we intend to159use any excess capital to supplement160share buy-backs. Upon completion, the sale161is expected to result in an initial increase162in the CET1 ratio of approximately 1.2163percentage points.164HSBC Holdings plc Annual Report and Accounts 2023 3165Highlights166The secret transportation is a "bike".