HSBC

Red LineText of policiesCommentsScore
Regulatory requirements
Ensure LegalityHuman Rights Policy
HSBC is guided by the International Bill of Human Rights and supports the UN Declaration of Human Rights and the principles concerning fundamental rights set out in the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work. HSBC is a signatory to or has publicly expressed support for a number of international codes:
· The UN Global Compact
· The OECD Guidelines for Multinational Enterprises
· The Global Sullivan Principles
· The UN Principles for Responsible Investment
· The UN Principles for Sustainable Insurance.

Forestry Policy
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;
Global Businesses must request covenants in documentation for facilities of longer than 1 year. Where this is not successfully negotiated (for example, in syndicated facilities for listed companies), the position must be satisfactorily explained/mitigated in the sustainability risk analysis.
The policies require compliance with national laws and key international conventions.well
No Corruption and Tax EvasionStatement on human rights
HSBC’s policies and procedures give practical effect to such initiatives as the Organisation of Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the International Chamber of Commerce Rule of Conduct to Combat Extortion and Bribery, the anti-bribery provisions of the revised OECD Guidelines for Multinational Enterprises, and Principle 10 of the United Nations Global Compact.

Financial crime risk policies
HSBC Group (HSBC) are committed to high standards of ethical behaviour and have zero tolerance towards bribery and corruption. HSBC requires compliance with all anti-bribery and corruption laws in all markets and jurisdictions in which it operates.
Customer Risk: Bribery & Corruption risks identified from customer behaviour are effectively managed through the application of controls.
The bank has a strong policy against financial crime, but it is mainly focused on the involvement of the bank itself in financial crime. It does not have clear requirements regarding its clients.partly
Ensure ESIA for mills and plantationsNot covered in the applicable policies and documents.not
Social requirements
Ensure FPICForestry Policy
HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: (...) wood logged in violation of traditional and civil rights;

Human Rights Policy
HSBC is guided by the International Bill of Human Rights and supports the UN Declaration of Human Rights and the principles concerning fundamental rights set out in the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work. HSBC is a signatory to or has publicly expressed support for a number of international codes:
· The UN Global Compact
· The OECD Guidelines for Multinational Enterprises
· The Global Sullivan Principles
· The UN Principles for Responsible Investment
· The UN Principles for Sustainable Insurance.
It provides some protection in the case of forestry operations, but it does not mention FPIC, nor are there FPIC requirements for pulp mills.not
Respect Human RightsStatement on human rights
HSBC is guided by the International Bill of Human Rights and supports the UN Declaration of Human Rights and the principles concerning fundamental rights set out in the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work. HSBC is a signatory to or has publicly expressed support for a number of international codes:
· The UN Global Compact
· The OECD Guidelines for Multinational Enterprises
· The Global Sullivan Principles
· The UN Principles for Responsible Investment
· The UN Principles for Sustainable Insurance.
HSBC will uphold key conventions on human rights, but it does not require clients to demonstrate they do so too.partly
Respect Indigenous rights and customary land use rightsForestry Policy
HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: (...) wood logged in violation of traditional and civil rights;
The policy provides protection to traditional rights when it comes to logging, but not regarding other impacts, such as water pollutionpartly
No forced resettlementNot covered in the applicable policies and documents.not
Environmental Requirements
No forest degradation and deforestationForestry Policy
HSBC will not knowingly provide financial services to customers involved directly, or indirectly via the supply chain, in: (...) wood logged in forests where high conservation values are threatened by industry; or forests being converted to plantation or to non-forest use (deforestation).
Implementation
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 Countries3: (this includes FSC or PEFC certification)

World Heritage Sites and Ramsar Wetlands Policy
HSBC does not wish to support projects which could result in:
1. A World Heritage Site being placed on the “In Danger” list, unless the World Heritage Committee specifically agrees in advance to that project; or
2. The special characteristics of a Ramsar Wetland being threatened
The policy protects a number of areas, but it does not protect HCS areas, peatlands and only provides some protection for protected areas. PEFC can not guarantee any protection.partly
Protect endangered speciesNot covered in the applicable policies and documents.not
No high-risk speciesNot covered in the applicable policies and documents.not
No fireNot covered in the applicable policies and documents.not
Protect peatAgricultural Commodities Policy
We have further strengthened our policy by expanding our prohibited businesses commitment, making it consistent with ‘No Deforestation, No Peat and No Exploitation’ (NDPE) policies which are increasingly common in the palm oil supply chain.
Not covered in the applicable policies and documents. The palm oil policy does protect peat, but does not apply to pulp production.not
No persistent pollutionNot covered in the applicable policies and documents.not
Corporate association / scope of the policy
Corporate association / scope of the policyForestry Policy
(...) focus on customers being 100% certified where logging in or buying from High Risk Countries3 (including suppliers).
Where a customer group also operates in other sectors, Global Businesses must not provide financial services directly supporting its Non-Compliant companies. Remaining risks will be considered on a case-by-case basis.
The policy does set some requirements for the client's supply chain, but it does not cover all partent, daughter and sister companies.partly