AmazonScience/document-haystack

1ESG review2Our approach to climate reporting  TCFD3Task Force on Climate-related Financial Disclosures (‘TCFD’) 4The table below sets out the 11 TCFD recommendations and summarises where additional information can be found. 5We have considered our ‘comply or explain’ obligation under both the UK’s Financial Conduct Authority’s Listing Rules and Sections 414CA and 6414CB of the UK Companies Act 2006, and confirm that we have made disclosures consistent with the TCFD Recommendations and Recommended 7Disclosures, including its annexes and supplemental guidance, save for certain items, which we summarise below and in the additional information 8section on page 440. 9Recommendation Response10Disclosure 11location12Governance13a) Describe the Board’s oversight of climate-related risks and opportunities (Companies Act 2006 – Sections 414CA and 414CB 2A (a))14Process, frequency 15and training 16 – Th17e Board takes overall responsibility for ESG strategy, overseeing executive management in developing the 18approach, execution and associated reporting. It considered ESG at eight meetings during the year.19 – Bo20ard members receive ESG-related training as part of their induction and ongoing development, and seek 21out further opportunities to build their skills and experience in this area.22 Pages 88 23and 25624 Page 88 25Sub-committee accountability, 26processes and frequency 27 – Th28e Group Audit Committee (‘GAC’) considered ESG and climate reporting matters at eight meetings during 292023. Furthermore, as an area of expanded assurance, the GAC, supported by the executive-level ESG 30Committee, provided close oversight of the disclosure risks in relation to ESG and climate reporting, amid 31rising stakeholder expectations.32 – Th33e Group Risk Committee (‘GRC’) received reports on climate risk management, energy and thermal coal 34phase-out policies, while maintaining oversight of delivery plans to ensure that the Group develops robust 35climate risk management capabilities. It considered ESG risk at five meetings in 2023.36 – Th37e diagram on page 88 provides an illustration of our ESG governance process, including how the Board’s 38strategy on climate is cascaded and implemented throughout the organisation. It identifies examples of 39forums that manage both climate-related opportunities and risks, along with their responsibilities and the 40responsible chair. 41 Page 26742 43 Pages 275 44and 278 45 Page 8846Examples of the Board and 47relevant Board committees 48taking climate into account49 – Th50e Board considered whether to establish a Board committee dedicated to ESG issues, but instead decided 51that the best way to support the oversight and delivery of the Group’s climate ambition and ESG strategy was 52to retain governance at Board level.53 – In 254023, the Board oversaw the implementation of ESG strategy through regular dashboard reports and 55detailed updates including: review and approval of the net zero transition plan, deep dives on the sustainability 56execution programme, reviews of net zero-aligned policies and climate-aligned financing initiatives. 57 Page 254 58Page 25459b)  De60scribe management’s role in assessing and managing climate-related risks and opportunities (Companies Act 2006 – Sections 414CA and 414CB 612A (a))62Who manages climate-related 63risks and opportunities64 – Th65e ESG Committee supports the development and delivery of our ESG strategy, key policies and material 66commitments by providing oversight, coordination and management of ESG commitments and initiatives. It 67is co-chaired by the Group Chief Sustainability Officer and the Group Chief Financial Officer.68 – In 269023, we enhanced our ESG governance with the establishment of a new Sustainability Execution 70Committee, which focuses on defining and measuring the success of our climate ambition, and developing 71commercial opportunities that support it through the sustainability execution programme. 72 – Th73e Group Chief Risk and Compliance Officer is the senior manager responsible for the management of 74climate risk under the UK Senior Managers Regime, which involves holding overall accountability for the 75Group’s climate risk programme.76 Page 22277 Page 88 78 Page 22279How management reports to 80the Board81 – Th82e Board delegates day-to-day management of the business and implementation of strategy to the 83Group Chief Executive. The Group Chief Executive is supported in his management of the Group by 84recommendations and advice from the Group Executive Committee, an executive forum comprising 85members of senior management that include chief executive officers of the global businesses, regional chief 86executive officers and functional heads. 87 – Th88e Group Executive Committee further enhanced its governance model of ESG matters with the 89introduction of a new Sustainability Execution Committee and supporting forums. These support senior 90management in the operationalisation of the Group’s sustainability strategy, through the oversight of the 91sustainability execution programme.92 Page 250 93 94 95Page 25496Processes used to 97inform management98 – Th99e Group Risk Management Meeting oversees the enterprise-wide management of all risks, including 100updates relating to the Group’s climate risk profile and risk appetite, top and emerging climate risks, and key 101climate initiatives.102 – Th103e Environmental Risk Oversight Forum oversees global risk activities relating to environmental risk 104management, including the transition and physical risks from climate change. Equivalent forums have been 105established at regional level, where appropriate.106 Page 88 107 Page 88108HSBC Holdings plc  Annual Report and Accounts 2023 69109Environmental