HSBC wins environmental performance award

06 February 2007

HSBC has won the Environmental Performance Award at this year's Hong Kong Awards for Industries. HSBC is the first Hong Kong bank in the Awards' 15 year history to receive this environmental accolade, which recognises local enterprises for their pursuit of environmental excellence.

Championed by the Hong Kong Special Administrative Region Government and organised by the Business Environment Council, the environmental award scheme received 39 entries from a wide spectrum of companies. Applications were evaluated based on a company's commitment to environmental protection, adoption of new technologies to minimise various environmental impacts of its operations and compliance with applicable environmental legislation.

HSBC, being the world's first 'carbon neutral' bank, has been actively committed to the environment for many years. In Hong Kong, HSBC has launched its environmental reporting in 2002 which aims to measure the total consumption of energy, water, paper as well as travel mileage and to set targets or initiatives to reduce consumption and greenhouse gas emissions.

In support of the Group's commitment to achieve carbon neutrality, HSBC in Hong Kong has invested approximately HK$3.9 million in video conferencing facility to reduce the need for business travel. The chillers for the air-conditioning system in HSBC Main Building in Central have been replaced by energy efficient chillers which draw seawater from the harbour. It has also installed an automated ventilation system at HSBC Centre car park, which designates fresh air intake according to actual need. The new system helps to reduce 1,251 tonnes of carbon dioxide emissions per year.

Internally, HSBC works closely with its suppliers to reduce environmental impact including reduction of material packaging and the use of environmentally-friendly products such as sugar-cane-starch lunch boxes, paper bags and napkins made by recycled paper and biodegradable plastic bags. HSBC also encourages all its suppliers and contractors to adopt environmental business practices by stipulating environmental criteria in tenders and supplier contracts.

The HSBC Group also incorporates environmental considerations into credit and risk assessment of its customers, expecting borrowers to undertake to comply with legal and regulatory environmental requirements. Besides voluntarily adopting the Equator Principles which provide a framework to address environmental and social issues that relate to project finance, HSBC has also issued a series of sustainable lending guidelines on sectors with potentially high environmental or social impacts, including forest land and forest products sector, freshwater infrastructure sector, chemicals sector and energy sector.

Jon Addis, HSBC Chief Operating Officer in Hong Kong, said: "We are pleased and honoured to receive the Environmental Performance Award. As a strong supporter of sustainable development, HSBC is committed to seeking ways to continuously improve our environmental profile through the adoption of new technologies and innovations. Every business and individual has a part to play in protecting our environment now and in the future."

In 2006, HSBC was named the 'Sustainable Bank of the Year' by the Financial Times in association with the International Finance Corporation, in recognition of the Group's leadership in integrating social, environmental and business objectives.

HSBC also topped the banking sector of the Climate Leadership Index under Carbon Disclosure Project 4 in the same year, with a score of 95/100, reflecting its leading position in responses to the climate change challenge within the sector.

Media enquiries to Ophelia Quach on (852) 2822 4947

Hong Kong Awards for Industries - Environmental Performance
Championed by the Government of HKSAR and organised by seven trade and industrial organisations and business support bodies, it is a joint project of the Government of HKSAR and the private sector to promote excellence in industries. The Hong Kong Awards for Industries in Environmental Performance is organised and presented by Business Environment Council, which is a leading independent cross-sector business association in Hong Kong advocating sustainable development.

Carbon neutrality
In October 2005, HSBC became the world's first major bank to become 'carbon neutral'. This has been achieved by managing and reducing our direct emissions; reducing the carbon intensity of the electricity we use by buying electricity from renewable sources where feasible; and offsetting the remaining carbon dioxide emissions by buying 'carbon credits' from 'green' projects.

The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which, with about 9,500 offices in 81 countries and territories and assets of US$1,738 billion at 30 June 2006, is one of the world's largest banking and financial services organisations.