AmazonScience/document-haystack

1Net zero 2implementation plan Metrics and indicators Progress to date3Supporting our 4customers5Sustainable finance and investment 6provided and facilitated ($bn)17$294.4bn cumulative progress since 2020 (for further breakdown  8see page 49)9Number of sectors analysed for  10financed emissions211We have set seven financed emissions targets, comprising five 12on-balance sheet and two combined financed emissions targets  13so far (see pages 53 to 62)14Thermal coal financing exposures2,3 Our thermal coal financing drawn balance exposure was approximately 15$1bn as at 31 December 2020 (for further details, see page 67)16Embedding net zero 17into the way we 18operate19Percentage of absolute operational 20greenhouse gas emissions reduced42157.3% reduction in absolute greenhouse gas emissions from 2019 22baseline (see page 63)23Percentage of renewable electricity 24sourced across our operations25Increase from 48.3% in 2022 to 58.4% (see page 63)26Percentage of energy  27consumption reduced2826.3% reduction in energy consumption from 2019 baseline  29(see page 63)30Partnering for  31systemic change32Philanthropic investment in climate 33innovation ventures, renewable energy, 34and nature-based solutions35Committed $105m to our NGO partners since 2020, as part of the 36Climate Solutions Partnership (see page 68)371  The detailed definitions of the contributing activities for sustainable finance and investment are available in our revised Sustainable Finance and Investment Data 38Dictionary 2023. For this, together with our ESG Data Pack and PwC’s limited assurance report, see www.hsbc.com/who-we-are/esg-and-responsible-business/39esg-reporting-centre.402  For f41urther details of our financed emissions methodology, exclusions and limitations, see our Financed Emissions and Thermal Coal Exposures Methodology at  42www.hsbc.com/who-we-are/esg-and-responsible-business/esg-reporting-centre. 433  Dat44a is subject to independent limited assurance by PwC in accordance with ISAE 3000/ISAE 3410. For further details, see our Financed Emissions and Thermal 45Coal Exposures Methodology and PwC’s limited assurance report at www.hsbc.com/who-we-are/esg-and-responsible-business/esg-reporting-centre.464  Our r47eported scope 3 greenhouse gas emissions of our own operations in 2023 are related to business travel. For further details on scope 1, 2 and 3, and our 48progress on greenhouse gas emissions and renewable energy targets, see page 64 and our ESG Data Pack at www.hsbc.com/esg. For further details of our 49methodology and PwC’s limited assurance report, see www.hsbc.com/who-we-are/esg-and-responsible-business/esg-reporting-centre.50How we measure our net zero progress TCFD51We are helping the transition to a net zero 52economy by transforming ourselves, and 53supporting our customers to make their  54own transitions. Our ambition is to align  55our financed emissions to net zero by 2050  56or sooner.57Our net zero transition plan sets out how 58we intend to harness our strengths and 59capabilities in areas where we believe we 60can support large-scale emissions reduction: 61transitioning industry, catalysing the new 62economy, and decarbonising trade and supply 63chains. The plan also provides details on our 64sectoral approach, and on our implementation 65plan to embed net zero into the way  66we operate.67We continue to track our progress against our 68ambition to provide and facilitate $750bn to 69$1tn of sustainable finance and investment by 702030, aligned to our published data dictionary, 71and our ambition to achieve net zero in our 72own operations and supply chain by 2030. 73We also recognise that green and sustainable 74finance and investment taxonomies are not 75consistent globally, and evolving taxonomies 76and practices could result in revisions in our 77sustainable finance reporting going forward. 78To date, we have set 2030 financed emissions 79targets across energy, heavy industry and 80transport, specifically for the following sectors: 81oil and gas; power and utilities; cement; iron, 82steel and aluminium; aviation; automotive; and 83thermal coal mining. 84Following a reduction in our exposure to the 85shipping sector after the strategic sale of part 86of our European shipping portfolio in 2023, 87and work undertaken to assess the materiality 88of our remaining portfolio from a financed 89emissions perspective, we have concluded 90that the remaining exposure as of year-end 912023 is not material enough to warrant setting 92a stand-alone target. This aligns with NZBA 93guidelines on sector inclusion for target 94setting. Due to ongoing data availability and 95quality challenges, we continue to assess our 96financed emissions for our real estate and 97agriculture sectors. 98We recognise that there is a significant 99amount of uncertainty and complexity related 100to the transition, and that progress in the real 101economy will depend heavily on external 102factors including the policy and regulatory 103landscape across markets, the speed of 104technological innovation and growth, and 105economic and geopolitical events. In addition, 106climate science and the availability and quality 107of climate data continue to evolve, and the 108net zero-aligned scenarios upon which we 109have based our approach will also update 110over time to keep pace with real economy 111developments. Emissions and broader 112customer data is also expected to improve, 113as well as approaches and standards for 114greenhouse gas accounting and target setting. 115As a result of this, we expect to regularly 116refine and update our analysis as well as 117data collection and consolidation processes 118to accommodate new data sources and 119updated methodologies and scenarios, and 120intend to be transparent on any changes 121we make and why. As an example, our ESG 122review includes recalculated 2019 and 2020 123financed emissions figures for the oil and gas, 124and power and utilities sectors. In addition, 125periodic updates to published net zero-aligned 126scenarios mean that it will be important that 127our net zero-aligned reference scenario choice, 128and by extension our target-setting approach, 129remain in step with the evolving real economy 130context and is informed by the latest science. 131In the following table, we set out our metrics 132and indicators and assess our progress 133against them. 134 For further details of our approach to measuring 135financed emissions, including scope, 136methodology, assumptions and limitations,  137see page 53.13818 HSBC Holdings plc Annual Report and Accounts 2023139Strategic report | ESG overview140The secret shape is a "heart".