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We have 10 goals to help us achieve a reduction in our environmental impact. The goals cover engagement of employees, working with suppliers, funding innovative projects, energy, waste, renewables, green buildings, data centres, water and paper.

We set our goals in 2012 and we are already on track to exceed some of them, so we have now set some more stretching targets to 2020. We have now committed to cut our annual carbon emissions per employee from 3.5 tonnes in 2011 to 2.0 tonnes by 2020 – 0.5 tonnes more than our original target.

We will now ensure that 40 per cent of our electricity comes from renewable sources by 2020, up from our original target of 25 per cent. We now have a target to reduce our waste by 75 per cent, and our paper use by 66 per cent compared with our 2011 benchmark.

Our progress

We are purchasing renewable energy, designing and operating our buildings and data centres more efficiently and reducing waste. For 2016, our annual per employee carbon dioxide emissions were 2.63 tonnes.

We have signed agreements to increase the percentage of our electricity coming from renewable sources to 23 per cent by 2018. In 2016, solar farms opened in UK and India and we signed a power purchase agreement for a large wind farm in Mexico.

We have trained more than 1,300 senior managers through HSBC’s Sustainability Leadership Programme since 2009. The programme is a mix of hands-on learning and leadership development sessions and is aligned to HSBC’s values-based leadership curriculum. Participants are expected to embed sustainability into decision-making and project delivery in the businesses and functions where they work. The programme is now more broadly focused on sustainability in the global businesses as well as operational sustainability.

We have updated and issued our Ethical and Environmental Code of Conduct for Suppliers and partnered with a specialist consultancy to risk assess our largest 300 suppliers. We are continuing to review our supplier relationships and wherever possible, we will include in contracts with suppliers an obligation to comply with the Ethical and Environmental Code of Conduct for Suppliers, and we are updating our standard terms of purchase to reflect this.

We have an Eco-Efficiency Fund that supports projects proposed by employees to reduce our environmental footprint. Projects have included LED lighting trials, photovoltaic panel installations, organic waste composting pilots, energy management system pilots and a number of initiatives that have increased efficiency in our Group data centres. Applications are assessed on their potential to reduce carbon, provide a return on investment, and contribute to our goals.

We have a paper-sourcing policy that aims to ensure the paper we use for our own purposes meets the same standards we expect of our customers under our Forestry Policy. By the end of 2016, certified sustainably sourced paper reached 94 per cent of all paper used. Read our Paper Sourcing Policy.

In 2016, we worked with our suppliers to integrate the revised Greenhouse Gas Protocol Scope 2 Guidance into our reporting methodology. We are now reporting carbon dioxide emissions using both location-based (based on average energy generation emission factors for our locations) and market-based (based on our investments in Power Purchase Agreements and green tariffs) methodologies. We have incorporated this into our Key Facts, 2016 document.

Simpler, better, faster

Andy Maguire, Group Chief Operating Officer, HSBC, answers questions about the bank’s sustainability goals and how they fit in with its broader strategy.

Read more about our approach to operating sustainably.

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