Company Profiles

HSBC

United Kingdom

HSBC is a financial services company offering business banking and financial services in six areas: checking, savings, cards, borrowing, insurance, and other services. A finance company is in a position to influence the environmental practices of companies in many industries through its lending policy. HSBC is a signatory to the Equator Principles, which call for comprehensive environmental management practices in project finance activities. In applying the Principles, HSBC declines transactions that don't comply and reports on the number of transactions approved and rejected. The company set high standards with the development of its own sector guidelines for project financing. For example, HSBC states a clear preference for Forest Stewardship Council certification for wood products (the highest standard globally, supported by the World Wildlife Fund) and rejects transactions not in line with its forestry sector guideline. The company's efforts to reduce its direct environmental impact include achieving carbon neutrality and providing impressive data reporting on its environmental performance. HSBC has reduced its normalized carbon dioxide emissions, makes significant renewable energy purchases, and publicly supports action on climate change. Challenges for HSBC include integrating its environmental philosophy throughout its operations. The company has started to address this through comprehensive staff trainings and by tying environmental improvements to executive performance.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/09 and may not reflect current opinions or subsequent events.