We understand that operating a successful, sustainable business requires consideration of economic, social and environmental factors. In  addition to continually   striving to increase our   positive

contributions to the well-being of society, we encourage our suppliers, customers and local communities to do the same through our procurement and financing policies as well as our corporate citizenship programmes.

Our financing decisions reflect our business principles, risk assessment processes and the needs of our customers.

Our objective is to promote sustainable development through our investment and lending policies. In addition to economic considerations, social and environmental issues play an important role in lending policies and environmental risks are included in credit assessments.

We support the Equator Principles, a voluntary code of conduct which is used to review and manage environmental and social risks in project financing. We also have sector-specific guidelines for lending to businesses operating in environmentally sensitive sectors (see box: 'Responsible Financing').

There are some types of business that we will not engage in, including working with companies that manufacture and/or sell weapons, dealing with countries that are subject to international sanctions, or transactions that could be used to foster racism, launder criminal earnings or evade tax.

As part of our commitment to encouraging customers to improve their environmental performance, we operate a Green Financing Scheme for Hong Kong-owned factories operating in the Pearl River Delta region. The scheme offers financing to acquire plant equipment that will enhance a factory's energy efficiency and/or help reduce pollution.