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HSBC launches freshwater infrastructure guideline
27 May 2005
HSBC has launched a new guideline governing its project finance activities in the freshwater infrastructure arena.
HSBC’s Freshwater Infrastructure Guideline was introduced to the bank’s shareholders at its Annual General Meeting (AGM) today. It 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.
Having been adopted by the UN as a basic human right, freshwater has become a focus for conservation agencies the world over. In 2002, the World Summit on Sustainable Development (WSSD) committed to halve the number of people without access to clean water and sanitation by 2015, an undertaking that will cost up to US$180billion every year.
By setting out the transactions that HSBC will and will not support, the guideline ensures that the bank’s activities are consistent with its focus on sustainable development, and its overall commitment to the environment – a major part of HSBC Group’s Corporate Social Responsibility strategy.
The Freshwater Infrastructure Guideline is the second such lending directive published by the world’s second largest bank. At last year’s AGM, HSBC published a guideline for the forest land and forest products sector, setting out principles for good management to which prospective clients working in the sector should adhere. The guidelines reinforce HSBC’s commitment to the Equator Principles, a set of voluntary guidelines providing a common framework for major banks to address environmental and social issues arising from financing projects.
Sir John Bond, Group Chairman, HSBC Holdings, introduced the bank’s new guideline, saying that freshwater conservation is the responsibility of businesses, governments and non-governmental bodies alike. He added: “By putting freshwater on the global agenda, we can all help support the World Summit on Sustainable Development in its efforts to cut the number of people without access to clean water and sanitation.
“This guideline ensures that our activities in the freshwater sector reinforce our efforts to reduce the social and environmental impacts of our operations. It is fitting, as the world’s local bank, for us to lead the way in defining appropriate standards, and to support our customers in achieving them.”
Read the new guideline. (2 page pdf 426k)
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Freshwater infrastructure guideline
(2 page pdf 426K)
2004 CSR Report
(36 page pdf 737K)
2004 CSR Summary Report
(12 page pdf 178K)
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