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Select an assessment year:

  • Overall approach
    13/16
    • Overarching commitment on deforestation
      12/14
      Deforestation commitment
      Deforestation-free
      12/14
      "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supplychain, in: [...] forests being converted to plantation or to non-forest use(deforestation)." "The policy relates to business customers involved in: a) Production: logging, including the management of forest plantations, but excluding rubberwood (see the Agricultural Commodities Policy). [This includes palm oil, soy and cattle products]. b) Supply chain [...] c) “Non-sector” businesses, which are not defined above or in HSBC’s Agricultural Commodities Policy, but may have similar impacts (such as forest clearance for mines, housing, pipelines or dams)".
    • Company must have anti-corruption policy
      1/2
      Anti-corruption
      Anti-corruption policy
      1/2
      “HSBC has developed and maintains robust policies and procedures, designed to prevent and detect potential bribery and corruption. We have global policies covering our staff and relevant third parties developed from a legal foundation of the UK Bribery Act, the USA’s Foreign Corrupt Practices Act and the Hong Kong Prevention of Bribery Ordinance [...] we expect customers, business partners, suppliers, vendors and other third parties with whom we work to adhere to the same standards of conduct to which we hold ourselves in our contract terms and conditions.”
  • Commodity score
    32/64
    • Beef & Leather
      28/64
      • Commitment Strength
        23/42
        • Commodity-specific financing policy
          8.6/9.6
          • Commitment details
            Yes
            8/8
            Commitment details
            Yes
            8/8
            Type of policy: Deforestation-free
            For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Only applies to high-risk customers - For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
          • Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
        • Companies must be legally operated
          3.2/5.6
          • Commitment details
            Own operations - Require
            2/4
            Commitment details
            Own operations - Require
            2/4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Only applies to sensitive sectors - “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all companies
            All
            0.4/0.4
            Policy applies to all companies
            All
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
        • Companies must protect priority forests or globally important landscapes
          8.2/9.6
          • Commitment details
            All high priority landscapes - Required
            8/8
            Commitment details
            All high priority landscapes - Required
            8/8
            For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Only applies to high-risk customers - For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all deals
            No
            0/0.4
            Policy applies to all deals
            No
            0/0.4
            For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Only applies to companies of a certain size - For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
        • Assurance mechanism to ensure compliance
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Companies must have a grievance mechanism
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Commitments must be timebound
          2.8/5.6
          • Commitment details
            Encourage
            2/4
            Commitment details
            Encourage
            2/4
            Type of policy: FI has specific deadline for all companies to comply; Compliance is prerequisite for financing
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Policy only applies to high-risk customers - "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubber wood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Policy only applies to companies of a certain size - "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
      • Social Considerations
        5/22
        • Company must ensure Free, Prior and Informed Consent
          4.8/5.6
          • Commitment details
            Yes - Require
            4/4
            Commitment details
            Yes - Require
            4/4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Only applies to high-risk companies - "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Only applies to companies of a certain size - "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: 1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more."
        • Company must respect labour rights
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Company must address gender equality issues
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Companies must encourage the inclusion of small-scale farmers
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
    • Palm oil
      39/64
      • Commitment Strength
        34/42
        • Commodity-specific financing policy
          9/9.6
          • Commitment details
            Yes
            8/8
            Commitment details
            Yes
            8/8
            Type of policy: Deforestation-free
            "HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth. Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free prior and informed consent; andoperations where there is significant social conflict.These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policiesincreasingly common within the palm oil supply chain [...] HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy."
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth. Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free prior and informed consent; andoperations where there is significant social conflict.These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policiesincreasingly common within the palm oil supply chain [...] HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth. Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free prior and informed consent; andoperations where there is significant social conflict.These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policiesincreasingly common within the palm oil supply chain [...] HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            ""HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth. Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free prior and informed consent; andoperations where there is significant social conflict.These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policiesincreasingly common within the palm oil supply chain [...] HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy." "Growers (plantations) and mills - excluding smallholders with less than 50 hectares "
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders
            0.2/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders
            0.2/0.4
            "Growers and Mills:1) Member of RSPO (preferably parent company, or relevant subsidiaries). 2) 100% certification of management units under RSPO. [...] Refiners and Traders: 1) Member of RSPO (preferably parent company, or relevant subsidiaries). 100% certification of owned facilities."
        • Companies must be legally operated
          5.2/5.6
          • Commitment details
            Entire supply chain - Require
            4/4
            Commitment details
            Entire supply chain - Require
            4/4
            "HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: a) Illegal operations"
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: a) Illegal operations"
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: a) Illegal operations" " Growers (plantations) and mills - excluding smallholders with less than 50 hectares "
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            "HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: a) Illegal operations" "Growers (plantations) and mills - excluding smallholders with less than 50 hectares [...] Refiners and traders - including bulkers and shippers who consolidate palm oil purchases; excluding desktop traders who do not take physical possession of a commodity. "
        • Companies must protect priority forests or globally important landscapes
          9.2/9.6
          • Commitment details
            All high priority landscapes - Required
            8/8
            Commitment details
            All high priority landscapes - Required
            8/8
            "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.” ""HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth."
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.” ""HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth."
          • Policy applies to all deals
            No
            0/0.4
            Policy applies to all deals
            No
            0/0.4
            "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.” ""HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth."
          • Policy applies to all companies
            All
            0.4/0.4
            Policy applies to all companies
            All
            0.4/0.4
            "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.” ""HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth."
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.” ""HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...] Deforestation, that is: the conversion of areas (often forests) necessary to protect high conservation values(HCVs); the conversion of high carbon stock (HCS) forests; the conversion of primary tropical forests; or land clearance by burning. New plantation development on peat, regardless of the depth."
        • Assurance mechanism to ensure compliance
          5/5.6
          • Commitment details
            Require
            4/4
            Commitment details
            Require
            4/4
            Certification scheme (if applicable): RSPO

            Verification method: Certification Scheme
            "HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy [...] Growers and Mills:1) Member of RSPO (preferably parent company, or relevant subsidiaries). 2) 100% certification of management units under RSPO. [...] Refiners and Traders: 1) Member of RSPO (preferably parent company, or relevant subsidiaries). 100% certification of owned facilities."
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy [...] Growers and Mills:1) Member of RSPO (preferably parent company, or relevant subsidiaries). 2) 100% certification of management units under RSPO. [...] Refiners and Traders: 1) Member of RSPO (preferably parent company, or relevant subsidiaries). 100% certification of owned facilities."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy [...] Growers and Mills:1) Member of RSPO (preferably parent company, or relevant subsidiaries). 2) 100% certification of management units under RSPO. [...] Refiners and Traders: 1) Member of RSPO (preferably parent company, or relevant subsidiaries). 100% certification of owned facilities."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy [...] Growers and Mills:1) Member of RSPO (preferably parent company, or relevant subsidiaries). 2) 100% certification of management units under RSPO. [...] Refiners and Traders: 1) Member of RSPO (preferably parent company, or relevant subsidiaries). 100% certification of owned facilities."
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders
            0.2/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders
            0.2/0.4
            "HSBC requires customers to obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) certification scheme, or equivalent, which is accepted as verification of compliance with HSBC’s policy [...] Growers and Mills:1) Member of RSPO (preferably parent company, or relevant subsidiaries). 2) 100% certification of management units under RSPO. [...] Refiners and Traders: 1) Member of RSPO (preferably parent company, or relevant subsidiaries). 100% certification of owned facilities."
        • Companies must have a grievance mechanism
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Commitments must be timebound
          5/5.6
          • Commitment details
            Require
            4/4
            Commitment details
            Require
            4/4
            Type of policy: FI allows specific time from onboarding to become compliant
            "Customers who develop or acquire new uncertified operations in the future may be unable to certify these immediately under the RSPO; for example, a mill or refinery to be built in 2022, or the acquisition of an uncertified operation. When undertaking such activities, customers must not breach core policy prohibitions and such customers must gain the additional certification within a reasonable timeframe, typically 1 year for completion of plant for refiners/traders and 4 years for commencement of operations for growers/mills. New customers are required to consent, before financial services are provided, to HSBC being able to disclose publicly whether the customer is or was a customer of the bank. This requirement recognises both the public concern over the role of financial institutions in this sector and the legal constraints on HSBC relating to customer confidentiality."
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "Customers who develop or acquire new uncertified operations in the future may be unable to certify these immediately under the RSPO; for example, a mill or refinery to be built in 2022, or the acquisition of an uncertified operation. When undertaking such activities, customers must not breach core policy prohibitions and such customers must gain the additional certification within a reasonable timeframe, typically 1 year for completion of plant for refiners/traders and 4 years for commencement of operations for growers/mills. New customers are required to consent, before financial services are provided, to HSBC being able to disclose publicly whether the customer is or was a customer of the bank. This requirement recognises both the public concern over the role of financial institutions in this sector and the legal constraints on HSBC relating to customer confidentiality."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "Customers who develop or acquire new uncertified operations in the future may be unable to certify these immediately under the RSPO; for example, a mill or refinery to be built in 2022, or the acquisition of an uncertified operation. When undertaking such activities, customers must not breach core policy prohibitions and such customers must gain the additional certification within a reasonable timeframe, typically 1 year for completion of plant for refiners/traders and 4 years for commencement of operations for growers/mills. New customers are required to consent, before financial services are provided, to HSBC being able to disclose publicly whether the customer is or was a customer of the bank. This requirement recognises both the public concern over the role of financial institutions in this sector and the legal constraints on HSBC relating to customer confidentiality."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "Customers who develop or acquire new uncertified operations in the future may be unable to certify these immediately under the RSPO; for example, a mill or refinery to be built in 2022, or the acquisition of an uncertified operation. When undertaking such activities, customers must not breach core policy prohibitions and such customers must gain the additional certification within a reasonable timeframe, typically 1 year for completion of plant for refiners/traders and 4 years for commencement of operations for growers/mills. New customers are required to consent, before financial services are provided, to HSBC being able to disclose publicly whether the customer is or was a customer of the bank. This requirement recognises both the public concern over the role of financial institutions in this sector and the legal constraints on HSBC relating to customer confidentiality."
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders
            0.2/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders
            0.2/0.4
            "Customers who develop or acquire new uncertified operations in the future may be unable to certify these immediately under the RSPO; for example, a mill or refinery to be built in 2022, or the acquisition of an uncertified operation. When undertaking such activities, customers must not breach core policy prohibitions and such customers must gain the additional certification within a reasonable timeframe, typically 1 year for completion of plant for refiners/traders and 4 years for commencement of operations for growers/mills. New customers are required to consent, before financial services are provided, to HSBC being able to disclose publicly whether the customer is or was a customer of the bank. This requirement recognises both the public concern over the role of financial institutions in this sector and the legal constraints on HSBC relating to customer confidentiality."
      • Social Considerations
        5/22
        • Company must ensure Free, Prior and Informed Consent
          5.2/5.6
          • Commitment details
            Yes - Require
            4/4
            Commitment details
            Yes - Require
            4/4
            “Prohibited Business : HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...]Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; the violation of the rights of local communities, such as the principle of free prior and informed consent ; and operations where there is significant social conflict.”
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            “Prohibited Business : HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...]Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; the violation of the rights of local communities, such as the principle of free prior and informed consent5 ; and operations where there is significant social conflict.”
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            “Prohibited Business : HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...]Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; the violation of the rights of local communities, such as the principle of free prior and informed consent5 ; and operations where there is significant social conflict.”
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            “Prohibited Business : HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...]Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; the violation of the rights of local communities, such as the principle of free prior and informed consent5 ; and operations where there is significant social conflict.”
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            “Prohibited Business : HSBC will not provide financial services to customers involved directly in or sourcing from suppliers involved in: [...]Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; the violation of the rights of local communities, such as the principle of free prior and informed consent5 ; and operations where there is significant social conflict.”
        • Company must respect labour rights
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Company must address gender equality issues
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Companies must encourage the inclusion of small-scale farmers
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
    • Soy
      30/64
      • Commitment Strength
        26/42
        • Commodity-specific financing policy
          8.6/9.6
          • Commitment details
            Yes
            8/8
            Commitment details
            Yes
            8/8
            Type of policy: Deforestation-free
            For cattle products, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Only high-risk customers - For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Only applies to companies of a certain size - For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more."
          • Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more."
        • Companies must be legally operated
          3.2/5.6
          • Commitment details
            Own operations - Require
            2/4
            Commitment details
            Own operations - Require
            2/4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Only applies to sensitive sectors - “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all companies
            All
            0.4/0.4
            Policy applies to all companies
            All
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
        • Companies must protect priority forests or globally important landscapes
          8.6/9.6
          • Commitment details
            All high priority landscapes - Required
            8/8
            Commitment details
            All high priority landscapes - Required
            8/8
            For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more." "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
        • Assurance mechanism to ensure compliance
          2.6/5.6
          • Commitment details
            Encourage
            2/4
            Commitment details
            Encourage
            2/4
            Verification method: Certification Scheme

            Certification scheme (if applicable): RTRS
            Agricultural Commodity policy states in the soy section that "Acceptable certification schemes are: Soy - Roundtable on Responsible Soy (RTRS).”
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Policy only high-risk customers - For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning [...] Acceptable certification schemes are: Soy - Roundtable on Responsible Soy (RTRS).”
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning [...] Acceptable certification schemes are: Soy - Roundtable on Responsible Soy (RTRS).”
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Only applies to companies of a certain size - For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more [...] Acceptable certification schemes are: Soy - Roundtable on Responsible Soy (RTRS).”
          • Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors
            0.2/0.4
            For soy, "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in:a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion ofprimary tropical forests; or clearance by burning." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more [...] Acceptable certification schemes are: Soy - Roundtable on Responsible Soy (RTRS).”
        • Companies must have a grievance mechanism
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Commitments must be timebound
          2.8/5.6
          • Commitment details
            Encourage
            2/4
            Commitment details
            Encourage
            2/4
            Type of policy: FI has specific deadline for all companies to comply; Compliance is prerequisite for financing
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Policy only high-risk customers - "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more". "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more". "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, andrubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates ifcertified by a credible certification scheme." "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: a) Deforestation, that is: the conversion of areas (often forests) necessary to protect HCVs; the conversion of primary tropical forests; or clearance by burning."
      • Social Considerations
        5/22
        • Company must ensure Free, Prior and Informed Consent
          4.8/5.6
          • Commitment details
            Yes - Require
            4/4
            Commitment details
            Yes - Require
            4/4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict."
          • Policy applies to all operations and financing
            No
            0/0.4
            Policy applies to all operations and financing
            No
            0/0.4
            Policy only applies to high-risk customers -"HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Only applies to companies of a certain size - "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more."
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing fromsuppliers involved in: [...]b) Exploitation of people and communities, such as: harmful or exploitative child labour or forced labour; theviolation of the rights of local communities, such as the principle of free, prior and informed consent; andoperations where there is significant social conflict." "The policy applies as follows: Soy: 1. Growers with plantations of 10,000 hectaresor more.2. Processors with annual crushing capacity of30,000 tonnes or more."
        • Company must respect labour rights
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Company must address gender equality issues
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Companies must encourage the inclusion of small-scale farmers
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
    • Timber, Pulp & Paper
      32/64
      • Commitment Strength
        32/42
        • Commodity-specific financing policy
          9.1/9.6
          • Commitment details
            Yes
            8/8
            Commitment details
            Yes
            8/8
            Type of policy: Zero net deforestation
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, whichfocus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from ororiginating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credibleallegations of unacceptableimpacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, whichfocus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from ororiginating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credibleallegations of unacceptableimpacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, whichfocus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from ororiginating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credibleallegations of unacceptableimpacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Restrictions on supply chain companies based on size - "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper"
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers
            0.3/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers
            0.3/0.4
            "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper." "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, whichfocus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from ororiginating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credibleallegations of unacceptableimpacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
        • Companies must be legally operated
          5.6/5.6
          • Commitment details
            Entire supply chain - Require
            4/4
            Commitment details
            Entire supply chain - Require
            4/4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging"
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging"
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all companies
            All
            0.4/0.4
            Policy applies to all companies
            All
            0.4/0.4
            “Environment[...]Our sustainability risk policies require our corporate customers within sensitive sectors to apply consistent standards of international good practice, going beyond international laws and agreements.”
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging"
        • Companies must protect priority forests or globally important landscapes
          6.7/9.6
          • Commitment details
            All high priority landscapes - Encouraged
            6/8
            Commitment details
            All high priority landscapes - Encouraged
            6/8
            Restrictions on supply chain companies based on size - "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper". "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all deals
            No
            0/0.4
            Policy applies to all deals
            No
            0/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Restrictions on supply chain companies based on size - "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper". "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.”
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers
            0.3/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers
            0.3/0.4
            "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper" "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC Global Businesses must make appropriate enquiries and not provide financial services directly supporting projects which threaten the special characteristics of UNESCO World Heritage Sites or Ramsar Wetlands. Restricted business Global Businesses must make further enquiries where aware that customers have or support projects in, immediately adjacent to or potentially impacting UNESCO World Heritage Sites or Ramsar Wetlands. They must assess whether the projects are inconsistent with HSBC’s objective (a) not to support companies which threaten the special characteristics of those sites and (b) to avoid reputational damage. Sustainability risk clearance must be obtained.” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, whichfocus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from ororiginating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credibleallegations of unacceptableimpacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
        • Assurance mechanism to ensure compliance
          5.2/5.6
          • Commitment details
            Require
            4/4
            Commitment details
            Require
            4/4
            Verification method: Certification Scheme

            Certification scheme (if applicable): FSC
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, which focus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from or originating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credible allegations of unacceptable impacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, whichfocus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from ororiginating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credibleallegations of unacceptableimpacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, whichfocus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from ororiginating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credibleallegations of unacceptableimpacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Restrictions on supply chain companies based on size - "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper"
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers; Retailers
            0.4/0.4
            "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper""HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).” "HSBC’s Global Businesses must check that their customers meet the following risk-based requirements, whichfocus on customers being 100% certified where logging in or buying from High Risk Countries. Production - All logging sites in High Risk Countries: FSC or PEFC certification. Production - All logging sites in Low Risk Countries: a) FSC or PEFC certification or b) No track record or credible allegations of unacceptable impacts. Supply Chain - All facilities sourcing wood or pulp from or originating from High Risk Countries: FSC or PEFC certification. Supply Chain - All facilities sourcing wood or pulp from ororiginating from Low Risk Countries:a) FSC or PEFC certification orb) No track record or credibleallegations of unacceptableimpacts. “Non-Sector” - Anywhere HSBC is aware that activities may be inconsistent with Prohibited Business: Make enquiries of the customer and from independent sources as appropriate."
        • Companies must have a grievance mechanism
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Commitments must be timebound
          5.1/5.6
          • Commitment details
            Require
            4/4
            Commitment details
            Require
            4/4
            Type of policy: Compliance is prerequisite for financing
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).”
          • Policy applies to all operations and financing
            All
            0.4/0.4
            Policy applies to all operations and financing
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).”
          • Policy applies to all deals
            All
            0.4/0.4
            Policy applies to all deals
            All
            0.4/0.4
            "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).”
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            Restrictions on companies based on size - "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper." "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).”
          • Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers
            0.3/0.4
            Policy applies to all stages of the supply chain
            Producers; Processors; Traders; Manufacturers
            0.3/0.4
            "The policy relates to business customers involved in: [...] Supply chain: Processing, such as sawmilling; Timber or lumber manufacturing, such as panel products or wooden furniture, but excluding small businesses for whom certification is inappropriate such as craftsmen operating as sole traders and rubberwood; Timber or lumber trading including exporters, importers and major wholesalers, but excluding small wholesalers (principally those who buy from importers) and all retailers; and The manufacturing and wholesale trading of pulp and paper". "HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: illegal logging; wood logged in violation of traditional and civil rights; wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).”
      • Social Considerations
        0/22
        • Company must ensure Free, Prior and Informed Consent
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Company must respect labour rights
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Company must address gender equality issues
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
        • Companies must encourage the inclusion of small-scale farmers
          0/5.6
          • Commitment details
            No
            0/4
          • Policy applies to all operations and financing
            No
            0/0.4
          • Policy applies to all deals
            No
            0/0.4
          • Policy applies to all companies
            No
            0/0.4
          • Policy applies to all stages of the supply chain
            None
            0/0.4
  • Reporting & Implementation
    10/20
    • Policy is reviewed and updated
      3/5
      Policy review
      Commit to update policy - Timeline unclear
      3/5
      "We regularly review our policies to ensure that they address new and emerging risks as well as stakeholder concerns."
    • Companies must disclose subsidiaries in commodity supply chains
      0/5
    • Monitoring and non-compliance process
      5/5
      Monitoring compliance
      Yes - Screening and monitoring process
      5/5
      “We check whether customers in sensitive sectors comply with our policies at the start of any financing relationship and we monitor them each year using the same systems applied to monitoring credit risk. If a customer is not complying with our policies, but has the appetite to make changes, we aim to support it through the process of carrying out the necessary improvements to become compliant.”
    • Reporting on implementation of the policy
      3/5
      Reporting
      Yes - Less than Annually or ad hoc
      3/5
      Numbers: HSBC reported in 2017 and 2019.

      Type of Reporting: Numerical reporting in ESG report for number of palm oil customers that are compliant and non-compliant.
      "A number of our customers have chosen to operatesustainably as a result of our engagement, including11 customers that have introduced NDPE policiesfollowing discussions with HSBC. At the end of 2018:–We financed 22 customers engaged in palm oilproduction that have either met our policy or will do soshortly. Several customers are in the final stages of fullcertification, managing external delays and resourceconstraints to meet our specific requirements.–We have 31 customers who have operations in the palmoil sector, but where we do not finance this part of theirbusiness. We have engaged with those customers andmany operate to or are working towards good practice. –We have 19 customers that do not meet our policy,and we intend to discontinue the relationship whenexisting loans have been repaid."
  • Commitment strength
    28/42
    Avg. score
  • Social considerations
    4/22
    Avg. score

Profile

HSBC are an international banking group headquartered in London serving private and commercial clients. Their services include corporate finance, insurance, and investments, securities, wealth management and retail banking services. As of 2017, HSBC's total assets amount to more than 2.4 trillion USD, with approximately 1 trillion USD in loans. HSBC are among the top 10 lenders to Forest 500 companies, with loans amounting to more than 68 billion USD across a broad range of forest risk sectors. They are also among the top 80 shareholders for Forest 500 companies, with more than 4 billion USD worth of shares.

HQ
HQ 
United Kingdom
Financial institution type
Financial institution type 
Asset management, Bank

How we assess the Forest 500

Investors and lenders need to adopt and implement strong deforestation policies that ensure their investments are not funding the destruction of forests.

All assessments use policies published on financial institution websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.