AmazonScience/document-haystack

1 Environmental 2Transition to net zero3TCFD4We support the transition of our customers, industries  5and markets to a net zero and a sustainable future,  6while moving to net zero ourselves.7In this section8Overview Our approach to 9the transition10We aim to achieve net zero in our financed emissions by 2050, and in 11our own operations and supply chain by 2030.12 Page 4513Understanding our 14climate reporting15To achieve our climate ambition we need to be transparent on the 16opportunities, challenges, related risks and progress we make.17 Page 4618Supporting our 19customers20Sustainable finance 21and investment22Our ability to help finance the transformation of businesses and 23infrastructure is key to building a sustainable future for our customers 24and society. 25 Page 4926Financed emissions We aim to align our financed emissions to achieve net zero by 2050 27and support our clients on their transition.28 Page 5329Embedding net 30zero into the way 31we operate32Net zero in our 33own operations34Part of our ambition to be a net zero bank is to achieve net zero 35carbon emissions in our operations and supply chain by 2030.36 Page 6337Managing climate risk We manage climate risk across all our businesses in line with our 38Group-wide risk management framework. Enhancing our climate 39change stress testing and scenario analysis capability is crucial in 40identifying and understanding climate-related risks and opportunities.41 Page 6542Sustainability risk policies Our sustainability risk policies seek to ensure that the financial 43services that we provide to customers do not result in unacceptable 44impacts on people or the environment.45 Page 6646Partnering for 47systemic change48Supporting systemic 49change to deliver net zero50We collaborate with a range of partners to support the development of 51an enabling environment and mobilise finance for nature and climate.52 Page 6853Our approach to 54climate reporting55Task Force on Climate-56related Financial 57Disclosures (‘TCFD’)58Our TCFD index provides our responses to each of the 11 59recommendations and summarises where additional information  60can be found.61 Page 6962At a glance63Our approach to transition to net zero64Our net zero ambition represents one of 65our four strategic pillars. In January 2024, 66we published our net zero transition plan. It 67provides an overview of our approach to net 68zero and the actions we are taking to help 69meet our ambition. It sets out how we are 70working to embed net zero across key areas 71of our organisation to help ensure that we can 72play a role in the transition to net zero in the 73markets we serve. 74Supporting our customers75To help achieve the scale and speed of change 76required to transition to net zero, we know we 77need to support our customers not just with 78finance, but with the services, insights and 79tools to help them to transition. In 2023, we 80continued to provide sustainable financing 81and investment to our customers in line with 82our ambition to provide and facilitate $750bn 83to $1tn by 2030. We report our progress 84against our 2030 financed emissions targets 85and our wider progress towards net zero by 862050, including how we plan to engage with 87customers in high-emitting sectors.88Embedding net zero into the way 89we operate90We take a risk-based, proportionate and 91iterative approach to embedding net zero 92into our organisation, focusing our efforts 93on where we can help drive material and 94implementable change, and applying learnings 95as we go along. Our approach will continue 96to mature over time with evolving science, 97methodologies, industry standards and 98regulatory requirements, and improvements in 99data and in technology infrastructure. 100Partnering for systemic change 101Our ability to achieve our own net zero 102ambition is heavily reliant on the mobilisation 103of all stakeholders, public and private, across 104multiple geographies. We continue to support 105systemic change through new and existing 106partnerships, and we engage through 107industry alliances and initiatives to help build a 108supportive enabling environment. 109Impact on reporting and  110financial statements111We have assessed the impact of climate risk 112on our balance sheet and have concluded that 113there is no material impact on the financial 114statements for the year ended 31 December 1152023. The effects of climate change are a 116source of uncertainty. We capture known and 117observable potential impacts of climate-related 118risks in our asset valuations and balance sheet 119calculations. These are considered in relevant 120areas of our balance sheet, including expected 121credit losses, classification and measurement 122of financial instruments, goodwill and other 123intangible assets; and in making the long term 124viability and going concern assessment. As 125part of assessing the impact on our financial 126statements we conducted scenario analysis to 127understand the impact of climate risk on our 128business (see page 65). For further details of 129our climate risk exposures, see page 221.130 For further details of how management 131considered the impact of climate-related risks on 132its financial position and performance, see 133‘Critical estimates and judgements’ on page 343.13444 HSBC Holdings plc Annual Report and Accounts 2023135ESG review | Environmental 136The secret sport is "surfing".