Sector policies

We base our sector risk policies on international standards of good practice. We also receive input from clients, industry associations, shareholders and Non-Governmental Organisations (NGOs).

The sector policies set out internationally accepted standards to be followed when we lend or invest in companies or projects operating in certain sensitive sectors. The policies specify areas where an involvement is prohibited or restricted.

Our policies are issued by Group Corporate Sustainability in collaboration with the appropriate sector teams within Global Banking and Markets and Commercial Banking. We also consult certain customers and NGOs prior to review by the Corporate Sustainability Committee of the Board and final approval at the Risk Management Meeting.

We review our sector policies regularly to ensure they remain current and relevant.

We have invested in a network of sustainability risk managers in 27 countries across HSBC’s five regions around the world to ensure that the policies are implemented and the wider risk management community is trained on sustainability risk. The risk team in Group Corporate Sustainability works with all parts of the business to develop sustainability initiatives and training material, and provides specialist guidance on specific transactions.

We believe that we can make a bigger contribution if we remain engaged with clients and support them as they work to improve the environmental and social impacts of their businesses. However, we will exit relationships as a last resort if satisfactory progress is not being achieved and our specifications are not met by the client.