HSBC 2015 Annual Report Download - page 276

Report of the Directors: Corporate Governance (continued)
Board committees
HSBC HOLDINGS PLC
274
Philanthropic & Community Investment
Oversight Committee
I am pleased to present the first report of the Philanthropic &
Community Investment Oversight Committee (‘PCIOC’) which
was established in December 2014. The PCIOC is expected to
oversee the Group’s philanthropic and community investment
activities on behalf of the Board and to provide greater visibility
and oversight of the Group’s corporate sustainability objectives.
As highlighted in the table of principal activities below, the
PCIOC has mainly focused on ensuring that the procedures
and processes around the approval of charitable donations are
appropriate and has endorsed the community investment
budget for 2016.
I have chaired the PCIOC since its establishment, with Lord Evans
of Weardale as the other non-executive Director member. In
addition, the committee has non-Director members, each of
whom brings valuable and relevant philanthropic and
community-focused experience to the committee: Sir Malcolm
Grant, who is the Chairman of NHS England and former President
and Provost of University College London, and Stephen Moss,
who is Group Head of Strategy & Planning.
In 2016, the Committee will additionally benefit from the
membership of Lord Robin Janvrin, former Private Secretary
to Queen Elizabeth II and chairman of trustees of The Royal
Foundation of The Duke and Duchess of Cambridge and
Prince Harry.
Laura Cha Chairman
Philanthropic & Community Investment Oversight Committee
22 February 2016
Members
Laura Cha (Chairman)
Lord Evans of Weardale
Sir Malcolm Grant (non-Director member)
Stephen Moss (non-Director member)
Lord Janvrin (non-Director member)
Role and responsibilities
The role and responsibilities of the PCIOC are set out in its
terms of reference. The terms of reference can be found
on our website at www.hsbc.com/about-hsbc/corporate-
governance/board-committees.
The PCIOC oversees philanthropic and community
investment initiatives, including both monetary donations
and employee volunteering activities and reports thereon to
the Board semi-annually.
How the PCIOC discharged its responsibilities
During the course of 2015, the PCIOC received regular
reports and presentations from the Global Head of
Marketing and the Head of Group Corporate Sustainability.
Principal activities
and significant issues
considered
Action taken
Governance of
community
investment
Given that the PCIOC was newly
established in 2015, it has been keen
to fully understand the Group’s
community investment policy and how
decisions are made, how charities are
vetted, the avoidance of conflicts of
interest, the recording and reporting
of donations made by the Group and
the assurance process following up on
these decisions.
Community
investment budget
and themes
The PCIOC received reports from
the Global Sustainability function
regarding the annual community
investment budget and how it is
decided, and endorsed the 2016
budget put forward by management.
As a result of the 150th Anniversary
Fund, the Group’s community
Investment budget has been increased
by $50m a year from 2015-2017.
Governance
The PCIOC was established at the end of 2014 and held
three meetings during the year. Attendance is set out in
the table on page 258.
The Chairman reports on matters of significance to the
Board after each meeting and the minutes of the meetings
are made available to all Board members.
Chairman’s Committee
The Chairman’s Committee has the power to act on behalf
of the Board between scheduled Board meetings to
facilitate ad hoc business requiring Board approval. The
Committee meets with such frequency and at such times as
it may determine, the quorum for meetings is dependent
upon the nature of the business to be transacted, as set
out in its terms of reference.