Hsbc Holdings Plc · LSE:HSBA
Hsbc — ESG Presentation (July 2016)
23 slides from Hsbc's sustainability presentation, July 2016
Slide 1: HSBC Holdings plc ESG Update
July 2016 HSBC Holdings plc ESG Update Francis Sullivan Deputy Head of Global Corporate Sustainability Rebecca Self Senior Manager, Investor Relations
Slide 2: Important notice and forward-looking statements
ESG Update Important notice and forward-looking statements Important notice The information set out in this presentation and subsequent discussion does not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any securities or
Slide 3: Progress on our actions to capture value
ESG Update: HSBC Group Progress on our actions to capture value Strategic actions Targeted outcome by 2017 Progress during 1Q16 Actions to re-size and simplify Group RWA reduction: $290bn $15bn further reduction in 1Q16, notably in GB&M Reduce Group RWAs by c.$290bn GB&M <1/3 of Group RWAs 5
Slide 4: 1Q16 Key Metrics
ESG Update: HSBC Group 1Q16 Key Metrics Key financial metrics Discrete quarter 1Q15 4Q15 1Q16 Target Return on average ordinary shareholders’ equity1 11.5% (3.4)% 9.0% >10% Return on average tangible equity1 13.1% (4.0)% 10.3% n/a Jaws (adjusted) - - (2.8)% Positive Dividends per ordinary share in r
Slide 5: 1Q16 vs 1Q15 profit before tax performance
ESG Update: HSBC Group 1Q16 vs 1Q15 profit before tax performance 1Q16 vs. 1Q15 adjusted PBT analysis USDm Adjusted PBT by global business USDm 1Q15 1Q16 vs. 1Q15 1Q15 1Q16 vs. 1Q15 Group Group Group RBWM 1,844 1,359 (485) excl. excl. excl. Group Brazil Brazil Group Brazil Brazil Group Brazil CMB 2,
Slide 6: Supporting the transition to a low carbon economy
ESG Update: Environment Supporting the transition to a low carbon economy Stuart Gulliver is a member of the World Economic Forum Climate Leaders CEO Group and a signatory to their open letter to policymakers In September 2015, HSBC’s Asset Management business signed the Montreal Carbon Pledge.
Slide 7: Building our business for the long term
ESG Update: Environment Building our business for the long term HSBC has invested in more than 70 Sustainability Risk Managers across our business. Based in the Credit Risk function, have local or regional responsibilities for advising on and managing environmental and social risks In 2015, we h
Slide 8: Building our business for the long term cont'd
ESG Update: Environment Building our business for the long term cont’d We have 10 goals to help us achieve a reduction in our environmental impact. The goals cover engagement of employees, working with suppliers, funding innovative projects, energy, waste, renewables, green buildings, data centres
Slide 9: Our employees
ESG Update: Social Our employees HSBC has 255,000 full-time equivalent (‘FTE’) employees with more than 145 languages spoken. In 2015 there were more than 55,000 internal employee movements We are proud to provide an open, supportive and inclusive workplace where people can grow and achieve thei
Slide 10: Led by our Values
ESG Update: Social Led by our Values We recognise that delivering fair outcomes for our customers and upholding financial market integrity is critical to a sustainable business model. We have taken a number of steps to raise our standards and deal with historical incidents. We have been simplifyin
Slide 11: Our approach to tax
ESG Update: Social Our approach to tax We apply the spirit as well as the letter of the law in all territories where we operate, and have adopted the UK Code of Practice for the Taxation of Banks. As a consequence, we pay our fair share of tax in the countries in which we operate. We continue to str
Slide 12: HSBC supporting UK SMEs
ESG Update: Social – Case Study HSBC supporting UK SMEs In April 2016 HSBC launched a GBP10 billion lending fund to support small and medium-sized enterprises (SMEs) in the UK, as part of a broader commitment to make banking cheaper and simpler for customers The GBP10bn fund is the largest package o
Slide 13: Our Conduct
ESG Update: Governance Our Conduct We have undertaken a series of initiatives in recent years to strengthen and develop our measures to encourage and ensure good conduct. In 2014, we established a Conduct & Values Committee (see slide 15) and later that year, we introduced our global Conduct Frame
Slide 14: Global Standards
ESG Update: Governance Global Standards We are committed to implementing the most effective global standards to combat financial crime. We are therefore putting in place robust controls aimed at enabling us to understand more about our customers, what they do, and where and why they do it. This co
Slide 15: Extensive Board oversight and experience
ESG Update: Governance Extensive Board oversight and experience Philanthropic and Financial System Vulnerabilities Committee Conduct and Values Committee Community Investment Oversight Committee The FSVC oversees the implementation by The CVC provides Board oversight of the The PCIOC is expected to
Slide 16: Sustainability at HSBC: Highlights and Conclusion
ESG Update: Sustainability at HSBC Highlights and Conclusion Number 1 More than $1bnPledged for for Climate Change Research, according to 300,000 green, social or sustainable bonds Thomson Reuters Extel hours spent by employees who volunteered during the working day 22% reduction in overall carbon e
Slide 17: Appendix
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Slide 18: Currency translation and significant items
Appendix: HSBC Group Currency translation and significant items $m 1Q15 4Q15 1Q16 Currency translation 296 47 - Significant items: Revenue Loss on sale of several tranches of real estate secured accounts in the US - (214) - Gain on the partial sale of shareholding in Industrial Bank 363 (Adverse) /
Slide 19: Where the profit goes (FY15)
Appendix: Governance Where the profit goes (FY15) Pre-tax variable pay Growing ordinary dividends USDm Group GB&M In respect of the year, USDbn 2014 2015 2014 2015 Ordinary dividend, shares in lieu Ordinary dividend, cash Total variable pay pool 3,660 3,462 1,120 1,086 10.0 Variable compensation inc
Slide 20: Board Committees
Appendix: Governance Board Committees HSBC Holdings plc Board of Directors Group Risk Group Audit Group Remuneration Nomination Committee Committee Committee Committee Non-executive responsibility Non-executive responsibility Non-executive responsibility Responsibility for identifying and for high l
Slide 21: Directors' Remuneration
Appendix: Governance Directors’ Remuneration We provide a Directors’ Remuneration Report on page 285 onwards of our HSBC Holdings plc Annual Report and Accounts 2015 Illustration of annual incentives 2015 2016 2017 2018 2019 and beyond Mar Sep Mar Mar Mar 6 month 6 months 1 year 1 year retention Per
Slide 22: Useful Links
Appendix: ESG Update Useful Links HSBC Holdings plc Annual Report and Accounts 2015 http://www.hsbc.com/~/media/hsbc-com/investorrelationsassets/hsbc-results/2015/annual-results/hsbc-holdings-plc/hsbc-holdings-plc-annual-report-and-accounts-2015.pdf HSBC Holdings plc Strategic Report 2015 http:/
Slide 23: Issued by HSBC Holdings plc Group Investor Relations
Issued by HSBC Holdings plc Group Investor Relations 8 Canada Square London E14 5HQ United Kingdom Cover image: Tsing Ma Bridge carries road and rail traffic to Hong Kong International Airport and accommodates large Telephone: 44 020 7991 3643 container ships. At HSBC, we help customers across the w