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Long held up as an example of bad bank behaviour, HSBC has also done some outstanding work in the field of CSR. Last year saw the second update to HSBC’s impressive forestry and agricultural commodities policies. Recognising that two of the biggest contributors to climate change are tropical forest clearance and the burning of coal for power, the bank has set strict standards for customers to meet on each of these matters, and stops banking those who do not comply.
“Our approach to climate issues keeps on evolving,” says Francis Sullivan, deputy head of global corporate sustainability and adviser on the environment. “Public policy, opinion and the regulatory framework on climate risks are changing all the time, and we need to anticipate and respond to that. We are confident that the standards in our forestry and agricultural commodities policies are among the highest in the financial services industry.”
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The standards in our forestry and agricultural commodities policies are among the highest in the financial services industry
Francis Sullivan |
The new policies triggered a training programme to ensure risk and relationship managers understood what was required and how to implement the new standards. As a result more than 3,000 employees were trained on the sustainability risk framework and policy updates.
HSBC is also working to encourage the growth of certified sustainable palm oil that meets the standards of the Roundtable on Sustainable Palm Oil by offering a discounted prepayment export finance product. The product launched in Singapore and Indonesia in 2014 and in Malaysia in early 2015.
Last year HSBC was a leader in global public markets for renewable energy, in the process helping to diversify issuance and product offerings. Key deals in 2014 included the largest wind turbine equity raising since 2010 as part of the €1.4 billion Vestas refinancing. HSBC was also joint bookrunner and joint placing agent for the $222 million equity private placement in Hong Kong for Huadian Fuxin Energy, a leading Chinese clean-energy developer.
The green bond market has developed fast, and HSBC is heavily involved in it. In 2014, it was the sole global coordinator and joint leader, manager and bookrunner for the first green bond issue by an Asian corporate issuer, Advanced Semiconductor Engineering Inc.
