Our climate strategy

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Our approach

This strategy focuses on the resilience of our business when facing climate change, both in mitigating our emissions in daily operation and setting environmental targets in line with Hong Kong government’s goal to achieve carbon neutrality before 2050, and in adapting to the physical and transition risks and opportunities under global warming. We hope to leverage our position in the value chain to influence change and be a catalyst for our clients and partners in adopting climate actions.

Highlights

Emissions and targets

Emissions and targets

In October 2020, our parent group HSBC set out its plan to attain net zero by 2050. As its subsidiary, we are committed to supporting and aligning with HSBC’s decarbonisation process. In supporting the Group’s net zero ambitions, we have been measuring our carbon emissions and setting targets to reduce the carbon footprint in our operations.

We aim to achieve this through a host of emission reduction initiatives and management incentives, and we can steer our investments to reduce carbon footprint in the wider community, fulfilling our pledge to address climate change. Together, we continue to monitor, manage and ultimately reduce the emissions generated from our daily operations, supply chain and financing portfolio.

Climate risk management

Recent changes in climate are widespread and intensifying. The consequences of climate change can already be felt today.

Hang Seng considers it a critical risk and pledges to incorporate climate risk into our bank-wide risk management framework. We believe that a comprehensive governance framework helps to reduce risk and enables us to make effective decisions.

Sustainable finance

We aim to support our community in transition to a low-carbon economy and carbon neutrality with sustainable financial solutions. We believe sustainable finance will help ensure that investments support a sustainable economy. We are launching various initiatives to support economic growth while reducing pressures on the environment, taking social and governance aspects into consideration.

Apart from setting internal targets on green loans and providing support to our corporate customers, we also offer green investment products to our retail and private banking customers. We observe the Equator Principles to adopt a responsible approach in making financing decisions.

Climate risk capacity building

We believe it is crucial for all employees to incorporate climate change-related risks and opportunities in their everyday work. It is of importance to raise awareness and provide training to employees to ensure they understand the broad issues relating to climate change and how our business can be impacted, while empowering them to make sure climate-related risks and opportunities are well-integrated into all our business units and functional departments. These trainings help foster corporate sustainable development.