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  • Overall approach
    7/10
    • Overarching commitment on deforestation
      4/6
      Deforestation-free commitment
      4/6
      "HSBC will not 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)."
    • Deforestation as a business risk
      2/2
      Yes
      2/2
      How is awareness shown?: 0

      Is the financial risk recognised by the financial institution reputational, financial, material, etc.?: Reputational
      "HSBC’s sustainability risk policies form part of our broader reputational risk framework and comprise: Agricultural Commodities Policy, Forestry Policy[...] Within our Global Risk function, we have reputational and sustainability risk specialists operating at both global and regional levels. They are responsible for reviewing, implementing and managing our sustainability risk policies, as well as our application of the Equator Principles."
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      In October 2020, we announced our new climate ambition to become net zero, including in our own operations by 2030 as well as our financed emissions by 2050 [...] We aim to support our customers by setting a new target to mobilise between $750bn and $1tn of sustainable finance and investment by 2030, underpinned by strong governance, risk management and metrics to measure our progress."
    • Company must have anti-corruption policy
      1/2
      Yes, either an anti-corruption policy or a policy on prohibiting abusive tax arrangements
      1/2
      "Anti-corruption and anti-briberyHSBC requires compliance with all applicableanti-bribery and corruption laws in all marketsand jurisdictions in which we operate. Theselaws include the UK Bribery Act, the USForeign Corrupt Practices Act, and the HongKong Prevention of Bribery Ordinance, as wellas other similar laws and regulations in thecountries where we operate. We have a globalanti-bribery and corruption policy, which givespractical effect to these laws and regulations,but also requires compliance with the spirit oflaws and regulations to demonstrate HSBC’scommitment to ethical behavioursand conduct."
  • Commodity score
    34/90
    • Beef & Leather
      31/90
      • Commitment Strength
        12/31
        • Commodity-specific deforestation financing policy
          7.2/9.6
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment details
            Zero-gross deforestation
            6/8
            "Prohibited Business: HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: [...] 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 operations and financing
            All financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "Prohibited Business: HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: [...] 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 deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "Prohibited Business: HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: [...] 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 companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "Prohibited Business: HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: [...] 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
            "Prohibited Business: HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: [...] 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
          0/4.6
          • Commitment details
            No commitment
            0/3
          • 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 monitor operations
          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 conduct risk assessments
          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 specify a cut-off date
          5.2/5.6
          • Commitment details
            Required
            4/4
            Commitment details
            Required
            4/4
            What cut-off date is specified?: 1 July 2004

            Is it set by the financial institution?: Yes
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme. The other prohibitions were introduced from the date of our original Agricultural Commodities policy in March 2014."
          • Policy applies to all operations and financing
            All financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme. The other prohibitions were introduced from the date of our original Agricultural Commodities policy in March 2014."
          • Policy applies to all deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme. The other prohibitions were introduced from the date of our original Agricultural Commodities policy in March 2014."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "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
            "1. Ranchers with 1,000 head of cattle or more. 2. Processors with slaughter-house capacity of 500 cattle per day or more. [...] HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in.."
      • Social Considerations
        5/28
        • Company must ensure Free, Prior and Informed Consent
          5.2/5.6
          • Commitment details
            Required
            4/4
            Commitment details
            Required
            4/4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: [...]b) 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." "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
            All financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
             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 financing
            0.4/0.4
            Policy applies to all deals
            All financing
            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 from suppliers involved in: [...]b) 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." "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 from suppliers involved in: [...]b) 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." "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 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
        • 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
        • Companies must resolve land conflicts
          0/1.6
          • Commitment details
            No
          • 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 and Implementation
        14/31
        • Commitments must be timebound
          Encouraged
          2.5/5
          Commitments must be timebound
          Encouraged
          2.5/5
          "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme. The other prohibitions were introduced from the date of our original Agricultural Commodities policy in March 2014. [...] Prohibited business: 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."
        • Companies must disclose subsidiaries in commodity supply chains
          No
          0/4
        • Companies must disclose locations
          No
          0/4
        • Policy is reviewed and updated
          Timeline for review unclear or review conducted less frequently than annually
          1/2
          Policy is reviewed and updated
          Timeline for review unclear or review conducted less frequently than annually
          1/2
          "HSBC’s sustainability risk policies form part of our broader reputational risk framework and comprise [...] Agricultural Commodities Policy [...] Forestry Policy [...] World Heritage Sites and Ramsar Wetlands Policy [...] The policies are reviewed at intervals."
        • Monitoring and non-compliance process
          Screening and monitoring process
          5/5
          Monitoring and non-compliance process
          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."
        • Engagement with non-compliant companies
          Engage with non-compliant companies with a time-bound threat of divestment
          5/5
          Engagement with non-compliant companies
          Engage with non-compliant companies with a time-bound threat of divestment
          5/5
          "We engage with customers, where appropriate, and support them in moving towards good practice, which is the most significant contribution we can make to sustainable development. However, we close banking relationships with customers where their activities in these sectors are and remain non-compliant with our risk policies." [...] "if we discover that a customer is outside our policies, we will request that it remedies the situation in good time and we will close the relationship unless satisfactory action is taken."  
        • Reporting on implementation of the policy
          No
          0/6
        • Ethical product in portfolio
          No
    • Palm oil
      38/90
      • Commitment Strength
        16/31
        • Commodity-specific deforestation financing policy
          7.2/9.6
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment details
            Zero-gross deforestation
            6/8
            For palm oil: "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)2 , the conversion of high carbon stock (HCS) forests3 ; the conversion of primary tropical forests; or land clearance by burning4 [...] These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policies increasingly common within the palm oil supply chain."
          • Policy applies to all operations and financing
            All financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            For palm oil: "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)2 , the conversion of high carbon stock (HCS) forests3 ; the conversion of primary tropical forests; or land clearance by burning4 [...] These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policies increasingly common within the palm oil supply chain."
          • Policy applies to all deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            For palm oil: "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)2 , the conversion of high carbon stock (HCS) forests3 ; the conversion of primary tropical forests; or land clearance by burning4 [...] These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policies increasingly common within the palm oil supply chain."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            For palm oil: "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)2 , the conversion of high carbon stock (HCS) forests3 ; the conversion of primary tropical forests; or land clearance by burning4 [...] These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policies increasingly common within the palm oil supply chain. [...] 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
            For palm oil: "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)2 , the conversion of high carbon stock (HCS) forests3 ; the conversion of primary tropical forests; or land clearance by burning4 [...] These commitments are consistent with No Deforestation, No Peat and No Exploitation (NDPE) policies increasingly common within the palm oil supply chain."
        • Companies must be legally operated
          4.2/4.6
          • Commitment details
            Companies entire supply chain - Required
            3/3
            Commitment details
            Companies entire supply chain - Required
            3/3
            "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 financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            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 financing
            0.4/0.4
            Policy applies to all deals
            All financing
            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 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 monitor operations
          5/5.6
          • Commitment details
            Required
            4/4
            Commitment details
            Required
            4/4
            Certification scheme (if applicable): RSPO

            Type of policy: Assurance mechanism
            "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 financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            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 financing
            0.4/0.4
            Policy applies to all deals
            All financing
            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 conduct risk assessments
          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 specify a cut-off date
          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
      • Social Considerations
        5/28
        • Company must ensure Free, Prior and Informed Consent
          5.2/5.6
          • Commitment details
            Required
            4/4
            Commitment details
            Required
            4/4
            "Prohibited business: HSBC will not knowingly provide financial services to high-risk 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 financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "Prohibited business: HSBC will not knowingly provide financial services to high-risk 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 deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "Prohibited business: HSBC will not knowingly provide financial services to high-risk 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 companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            For palm oil: "Prohibited business: HSBC will not knowingly provide financial services to high-risk 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. [...] 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
            "Prohibited business: HSBC will not knowingly provide financial services to high-risk 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."
        • 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
        • 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
        • Companies must resolve land conflicts
          0/1.6
          • Commitment details
            No
          • 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 and Implementation
        16/31
        • Commitments must be timebound
          Required
          5/5
          Commitments must be timebound
          Required
          5/5
          "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."
        • Companies must disclose subsidiaries in commodity supply chains
          No
          0/4
        • Companies must disclose locations
          No
          0/4
        • Policy is reviewed and updated
          Timeline for review unclear or review conducted less frequently than annually
          1/2
          Policy is reviewed and updated
          Timeline for review unclear or review conducted less frequently than annually
          1/2
          "HSBC’s sustainability risk policies form part of our broader reputational risk framework and comprise [...] Agricultural Commodities Policy [...] Forestry Policy [...] World Heritage Sites and Ramsar Wetlands Policy [...] The policies are reviewed at intervals." 
        • Monitoring and non-compliance process
          Screening and monitoring process
          5/5
          Monitoring and non-compliance process
          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."
        • Engagement with non-compliant companies
          Engage with non-compliant companies with a time-bound threat of divestment
          5/5
          Engagement with non-compliant companies
          Engage with non-compliant companies with a time-bound threat of divestment
          5/5
          "We engage with customers, where appropriate, and support them in moving towards good practice, which is the most significant contribution we can make to sustainable development. However, we close banking relationships with customers where their activities in these sectors are and remain non-compliant with our risk policies."  [...] "if we discover that a customer is outside our policies, we will request that it remedies the situation in good time and we will close the relationship unless satisfactory action is taken."
        • Reporting on implementation of the policy
          No
          0/6
        • Ethical product in portfolio
          No
    • Soy
      34/90
      • Commitment Strength
        15/31
        • Commodity-specific deforestation financing policy
          7.2/9.6
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment details
            Zero-gross deforestation
            6/8
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: 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. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more."
          • Policy applies to all operations and financing
            All financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: 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. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more."
          • Policy applies to all deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: 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. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in: 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. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 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 from suppliers involved in: 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. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more."
        • Companies must be legally operated
          0/4.6
          • Commitment details
            No commitment
            0/3
          • 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 monitor operations
          2.8/5.6
          • Commitment details
            Encouraged
            2/4
            Commitment details
            Encouraged
            2/4
            Certification scheme (if applicable): RTRS

            Type of policy: Assurance mechanism
            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 financing
            0.4/0.4
            Policy applies to all deals
            All financing
            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; 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
            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 conduct risk assessments
          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 specify a cut-off date
          5.2/5.6
          • Commitment details
            Required
            4/4
            Commitment details
            Required
            4/4
            Is it set by the financial institution?: Yes

            What cut-off date is specified?: 1 July 2004
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme. The other prohibitions were introduced from the date of our original Agricultural Commodities policy in March 2014."
          • Policy applies to all operations and financing
            All financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme. The other prohibitions were introduced from the date of our original Agricultural Commodities policy in March 2014."
          • Policy applies to all deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme. The other prohibitions were introduced from the date of our original Agricultural Commodities policy in March 2014."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "The policy applies as follows: 1. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 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
            "The policy applies as follows: 1. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more. [...] HSBC will not knowingly provide financial services to high-risk customers involved directly in or sourcing from suppliers involved in.."
      • Social Considerations
        5/28
        • Company must ensure Free, Prior and Informed Consent
          5.2/5.6
          • Commitment details
            Required
            4/4
            Commitment details
            Required
            4/4
            "HSBC will not knowingly provide financial services to high-risk 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." [...] The policy applies as follows: [...] 1. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more."
          • Policy applies to all operations and financing
            All financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk 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." [...] The policy applies as follows: [...] 1. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more."
          • Policy applies to all deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "HSBC will not knowingly provide financial services to high-risk 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." [...] The policy applies as follows: [...] 1. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more."
          • Policy applies to all companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "HSBC will not knowingly provide financial services to high-risk 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." [...] The policy applies as follows: [...] 1. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 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 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." [...] The policy applies as follows: [...] 1. Growers with plantations of 10,000 hectares or more. 2. Processors with annual crushing capacity of 30,000 tonnes or more."
        • 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
        • 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
        • Companies must resolve land conflicts
          0/1.6
          • Commitment details
            No
          • 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 and Implementation
        14/31
        • Commitments must be timebound
          Encouraged
          2.5/5
          Commitments must be timebound
          Encouraged
          2.5/5
          "The prohibitions relating to burning and conversion apply from 1 July 2004 for soy, cattle ranching, and rubberwood, reflecting the introduction of HSBC’s original Forestry policy. HSBC accepts later cut-off dates if certified by a credible certification scheme. The other prohibitions were introduced from the date of our original Agricultural Commodities policy in March 2014. [...] Prohibited business: 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."
        • Companies must disclose subsidiaries in commodity supply chains
          No
          0/4
        • Companies must disclose locations
          No
          0/4
        • Policy is reviewed and updated
          Timeline for review unclear or review conducted less frequently than annually
          1/2
          Policy is reviewed and updated
          Timeline for review unclear or review conducted less frequently than annually
          1/2
          "HSBC’s sustainability risk policies form part of our broader reputational risk framework and comprise [...] Agricultural Commodities Policy [...] Forestry Policy [...] World Heritage Sites and Ramsar Wetlands Policy [...] The policies are reviewed at intervals." 
        • Monitoring and non-compliance process
          Screening and monitoring process
          5/5
          Monitoring and non-compliance process
          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."
        • Engagement with non-compliant companies
          Engage with non-compliant companies with a time-bound threat of divestment
          5/5
          Engagement with non-compliant companies
          Engage with non-compliant companies with a time-bound threat of divestment
          5/5
          "We engage with customers, where appropriate, and support them in moving towards good practice, which is the most significant contribution we can make to sustainable development. However, we close banking relationships with customers where their activities in these sectors are and remain non-compliant with our risk policies." [...] "if we discover that a customer is outside our policies, we will request that it remedies the situation in good time and we will close the relationship unless satisfactory action is taken."  
        • Reporting on implementation of the policy
          No
          0/6
        • Ethical product in portfolio
          No
    • Timber, Pulp & Paper
      33/90
      • Commitment Strength
        17/31
        • Commodity-specific deforestation financing policy
          7.1/9.6
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment details
            Zero-gross deforestation
            6/8
            "HSBC will not 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 financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "HSBC will not 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 originating from Low Risk Countries: a) FSC or PEFC certification or b) 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 deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "HSBC will not 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 originating from Low Risk Countries: a) FSC or PEFC certification or b) 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 companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "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). b) 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 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)"
          • 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: a) Production: logging, including the management of forest plantations, but excluding rubberwood (see the Agricultural Commodities Policy). b) 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."
        • Companies must be legally operated
          4.6/4.6
          • Commitment details
            Companies entire supply chain - Required
            3/3
            Commitment details
            Companies entire supply chain - Required
            3/3
            "HSBC will not 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 financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "HSBC will not 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 financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "HSBC will not 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
            All financing
            0.4/0.4
          • 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, 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)."
        • Companies must monitor operations
          5.1/5.6
          • Commitment details
            Required
            4/4
            Commitment details
            Required
            4/4
            Certification scheme (if applicable): FSC and PEFC

            Type of policy: Assurance mechanism
            "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 or b) 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 financing
            0.4/0.4
            Policy applies to all operations and financing
            All financing
            0.4/0.4
            "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 deals
            All financing
            0.4/0.4
            Policy applies to all deals
            All financing
            0.4/0.4
            "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 companies
            No
            0/0.4
            Policy applies to all companies
            No
            0/0.4
            "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"
          • 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
            "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."
        • Companies must conduct risk assessments
          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 specify a cut-off date
          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
      • Social Considerations
        0/28
        • 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
        • 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
        • 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
        • Companies must resolve land conflicts
          0/1.6
          • Commitment details
            No
          • 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 and Implementation
        16/31
        • Commitments must be timebound
          Required
          5/5
          Commitments must be timebound
          Required
          5/5
          "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).”
        • Companies must disclose subsidiaries in commodity supply chains
          No
          0/4
        • Companies must disclose locations
          No
          0/4
        • Policy is reviewed and updated
          Timeline for review unclear or review conducted less frequently than annually
          1/2
          Policy is reviewed and updated
          Timeline for review unclear or review conducted less frequently than annually
          1/2
          "HSBC’s sustainability risk policies form part of our broader reputational risk framework and comprise [...] Agricultural Commodities Policy [...] Forestry Policy [...] World Heritage Sites and Ramsar Wetlands Policy [...] The policies are reviewed at intervals."
        • Monitoring and non-compliance process
          Screening and monitoring process
          5/5
          Monitoring and non-compliance process
          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."
        • Engagement with non-compliant companies
          Engage with non-compliant companies with a time-bound threat of divestment
          5/5
          Engagement with non-compliant companies
          Engage with non-compliant companies with a time-bound threat of divestment
          5/5
          "We engage with customers, where appropriate, and support them in moving towards good practice, which is the most significant contribution we can make to sustainable development. However, we close banking relationships with customers where their activities in these sectors are and remain non-compliant with our risk policies." [...] "if we discover that a customer is outside our policies, we will request that it remedies the situation in good time and we will close the relationship unless satisfactory action is taken."  
        • Reporting on implementation of the policy
          No
          0/6
        • Ethical product in portfolio
          No
  • Commitment strength
    15/31
    Avg. score
  • Reporting and Implementation
    15/31
    Avg. score
  • Social considerations
    4/28
    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 lenders and shareholders to Forest 500 companies, across a broad range of forest risk sectors.

HQ
HQ 
United Kingdom
Financial institution type
Financial institution type 
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.