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Sector guidelines and policies
HSBC's relationship managers manage large-scale investments and advance credit to global clients in almost every business sector. Business opportunities may be accompanied by some environmental or social risk and in order that we can effectively assess and monitor these risks, we have published policies (known as guidelines until 2006) governing our activities in certain sectors.
The sector policies set out internationally accepted standards to be followed when we lend or invest in companies or projects operating in the sector concerned, and specify areas where an involvement is prohibited. They also reinforce our commitment to the Equator Principles, a set of voluntary guidelines providing a common framework for major financial institutions to address environmental and social issues arising from financing projects.
We believe that we can make a bigger contribution to sustainable development if we remain engaged with clients operating in such industries and support them, including financially where it makes good business sense, as they work to improve the environmental and social impacts of their businesses.
The policies are issued by Group Corporate Sustainability in collaboration with the appropriate sector team within Global Banking and Markets and with Commercial Banking. We also consult certain customers and non-governmental organisations prior to review by the Corporate Sustainability Committee of the Board and final approval by our Risk Management Meeting. We review our sector policies regularly to ensure they remain current and relevant.
Chemicals industry sector guideline (2 page pdf 41k)
August 2005 - The guideline covers Agricultural Chemicals, Petrochemicals, Speciality Chemicals and Gases. It sets out broad principles of good chemical production and handling, helping our customers to work towards sustainable chemical management.
Energy Sector Policy (2 page pdf 44k )
June 2006 - The energy sector is responsible for the provision of power across the globe, playing an essential role in the world economy. If not managed sensitively, its activities can have a potentially high environmental or social impact, including contributing to climate change through the emission of greenhouse gases. HSBC's Energy Sector Policy provides guidance to its offices on sustainability standards applicable to the Group's involvement in this sector.
Forest Land and Forest Products Sector Guideline (3 page pdf 285 )
September 2008 - The policy sets out broad principles of good forest management and supports independent certification to confirm that operations in the sector are being undertaken in a legal and sustainable manner. It covers the following industries and activities: forestry; timber and timber products/processing; timber trading; plantations (pulp, timber, oil palm, rubber); and forest conversion.
In response to questions raised by stakeholders, more details are available in Frequently Asked Questions (3 page pdf 327k ), including data on HSBC’s implementation of this policy. The policy was originally published as a guideline in 2004 and the archived version remains available (2 page pdf 206k).
Freshwater infrastructure guideline (2 page pdf 426k)
May 2005 - HSBC's Freshwater Infrastructure Guideline is based on widely adopted international sustainable development standards adopted by stakeholders including the World Commission on Dams (WCD) as well as other industry participants, development agencies and major environmental non-governmental organisations.
Mining and Metals Sector Policy (2 page pdf 40k)
May 2007 - The sector is a diverse and important industry that supplies minerals and metals that underpin economic growth globally. Its activities can be complex and varied and if not managed responsibly, have potentially significant impacts on the environment. HSBC's Mining and Metals sector risk policy provides guidance to its offices on sustainability standards applicable to the Group's involvement with this sector.
Downloads
2007 Sustainability Report
(39 page pdf 1,744K)
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