Company Profiles

HSBC

United Kingdom

The finance industry faces many sustainability challenges and HSBC is seriously addressing the issues. In 2003, HSBC adopted the Equator Principles, and in 2006 the company signed the revised principles, which call for comprehensive environmental management practices in project finance activities. In applying the Principles, HSBC declines transactions that don't comply with the Principles 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. Impressive data reporting and the achievement of carbon neutrality in September 2005 (through a three-phased Carbon Management Plan), illustrate the company's efforts to reduce its direct impact. HSBC has made good progress in reducing its normalized CO2 emissions, making significant renewable energy purchases, and publicly supporting action on climate change. Future challenges for HSBC and its 312,000 employees include integrating its environmental philosophy throughout its operations.

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 8/31/07 and may not reflect current opinions or subsequent events.