1 Teresa Au HSBC Head of Corporate Sustainability Asia Pacific Region Our values. Our conviction. Our actions. The Strategy for Corporate Sustainability: an HSBC Perspective

2 Why sustainability is so relevant to businesses? “Climate change will affect everyone but developing countries will be hit hardest, soonest and have the least capacity to respond.” Lord Stern, Special Advisor to HSBC Group Chairman “The essence of business statesmanship in the 21 st century… is to build a more sustainable, prosperous global economy that will benefit all.” Ban Ki-moon, Secretary General of the United Nations “The emerging economies of Asia will be among the world's largest emitters of greenhouse gases… they must be full participants in setting the global direction forward.” Lee Hsien Loong, Prime Minister of Singapore

3 Sustainability is at the heart of our business Economic Social Environmental Banking for the long term Corporate Sustainability

4 4 Global corporate sustainability priorities Stakeholder Engagement (Communication, Reporting, Involvement, Partnership) “Be the world’s leading brand in corporate sustainability” ― Stephen Green Sustainable Finance Footprint Management Community Investment People and Diversity

Engaging customers on low-carbon solutions  Climate Confidence Monitor revealed that… 43% of those surveyed chose climate change ahead of global economic stability when asked about their top 3 concerns  Holistic programmes :

Development of practical low-carbon tools Capitalising on the Business Opportunity*  CCBF’s Business Guide  WWF’s Low Carbon Office Operation Programme  The Climate Group’s HKCRC

7 Our Perception of the Financial Opportunity… Investments in clean energy by end of Markets for low-carbon energy products by Global Carbon Market in US$155 bn Sources (July 2009): 1 – Stern, 2 – UNEP & New Energy Finance, 3 – Point Carbon, 4- HSBC Global Research US$500 bn US$116 bn US$470 bn Governments’ “Green” Stimulus Plans as of May

8 Combating climate change via products & services  Global Climate Change Benchmark Index with broad sector and industry coverage  Green insurance products in Brazil, Hong Kong, Mexico and Argentina  Green project financing

9  Green Credit Card 1 st in Asia Pacific 1 st Eco-Product label “HSBC Green Roof for Schools” Capturing first-mover competitiveness  Green Equipment Financing 1 st in Hong Kong and Pearl River Delta Region Government’s Cleaner Production Partnership HomeSurance New feature GREEN  Green HomeSurance & Green TravelSurance 1 st in Asia Pacific “Eco Blocks for Eco Schools”  Energy Efficiency Loan Scheme 1st in Hong Kong Facilitates building retrofits

10 Minimising our own environmental footprint  First carbon neutral bank  Global Environmental Efficiency Programme  Managed Print Service  Video-conferencing

11 Pioneer partnerships with governments  Green Hong Kong ▪ Carbon Audit  Secretary for the Environment & HSBC in an community environmental campaign launch  Chief Secretary for Administration & HSBC in the establishment of Social Enterprise Business Centre

12 Developing sustainable livelihoods  Microfinance India, Mexico, Philippines and Sri Lanka  Rural bank China

13  Future First Supports some 133,000 homeless and disadvantaged children in 39 countries. Investing in communities: Education & Environment  JA More than Money Builds financial and business literacy for over 100,000 children across 25 countries.  HSBC Climate Partnership Tackles climate change impacts for people, forest, water and cities; and engages colleagues as climate champions.  Wetland conservation in mainland China HSBC Group Chairman visited one of the three HSBC- supported wetland sites which have been awarded Ramsar site status.

14 Driving employee engagement for a better community  Developing people leadership  Our people: A force for good in the community

15 Valuing diversity to achieve success  Best place to work  Best place to bank Child care centre Community Banking Work-life balance

16 Recognition for our leadership  Dow Jones Sustainability Index & FTSE4Good  2006 FT Sustainable Bank of the year  Rated ‘top bank’ on climate change governance  APEA Responsible Entrepreneurship Award 2008 (Brunei and Indonesia)  Best Company for Women Award 2007: Asia Pacific  China Charity Award  HK Government Top Award for Environmental Excellence  Green Enterprise Grand Award (Hong Kong)  Ranked 1 st in CSR: HSI Index listed companies Sustainability Awards & Ranking

17 Teresa Au HSBC Head of Corporate Sustainability Asia Pacific Region