HSBC named Sustainable Bank of the Year

14 June 2006

HSBC has been named as overall winner in the first FT Sustainable Banking Awards, in recognition of its leadership in merging social, environmental and business objectives.

The awards, launched by the FT in association with the International Finance Corporation, the private sector arm of the World Bank, drew 90 entries from 48 financial institutions. They were presented at a dinner in London last night with a keynote presentation by David Cameron, leader of Britain's Conservative Party.

Jon Williams, Group Head of Sustainable Development, HSBC Holdings plc said: "HSBC is pleased to be awarded sustainable bank of the year. This recognises the outstanding contribution of employees, clients and partners across the world in meeting HSBC's sustainability goals. It also sets a new standard by which future performance will be measured."

HSBC also received a commendation for excellence in the 'Sustainable Deal of the Year' category for a project finance deal to provide 1,800 low emission buses to Santiago, Chile.

The Transantiago fleet, financed by HSBC, crosses the Andes from Brazil for delivery in Chile.

HSBC's award submission highlighted recent initiatives including:

• The HSBC Holdings plc Group Management Board established a Group Sustainable Development Unit to build on existing risk management initiatives and ensure an additional focus on business development opportunities. This unit has two primary roles: Sustainable Risk Advisory, and Sustainable Business Development - with both units focussing on climate change, particularly low carbon technology, renewable energy, water infrastructure, sustainable forestry and microfinance.
• In 2005 HSBC became the world's first major bank to become 'carbon neutral'. To meet this goal, a Carbon Management Plan was put in place which consisted of three parts: to manage and reduce its direct emissions; to reduce the carbon intensity of the electricity it uses by buying electricity from renewable sources where feasible; and to offset the remaining carbon dioxide emissions by buying emissions reductions from 'green' projects.
• HSBC recently chaired the Equator Principles (EP) working group, assisting IFC with its Safeguard Policy Review; and subsequent redrafting of the Principles.
• HSBC has released sector lending guidelines that reinforce its commitment to sustainability - including the Forest Land and Forest Products Sector Guideline (2004), the Freshwater Infrastructure Sector Guideline (2005) and the Chemicals Industry Sector Guideline (2005). The sector guidelines set out internationally accepted standards to be followed when HSBC lends or invests in companies or projects operating in the sector concerned, and specify areas where an involvement is prohibited.
• The Group has also developed partnerships that promote sustainability and environmental awareness:
  > "Investing in Nature" is a US$50 million, five-year eco-partnership working with Earthwatch Institute, WWF and Botanic Gardens Conservation International.
  >The 'HSBC Partnership in Environmental Innovation', a three-year, £650,000 collaboration with Newcastle University and University of East Anglia, is a global programme to research climate change/environmental damage.

For more information please contact:
Nhan Chiem
Manager Corporate Communications, Group Corporate Affairs
HSBC Holdings plc
Ph: +44 (0)20 799 10639