HSBC 2015 Annual Report Download - page 228

Report of the Directors: Risk / Capital
Appendix to Risk – Policies and practices / Capital
HSBC HOLDINGS PLC
226
Sustainability risk
Sustainability risks arise from the provision of financial services to companies or projects which indirectly result in
unacceptable impacts on people or on the environment. The Risk Function, with input from Global Corporate Sustainability,
is mandated to manage these risks globally working through local offices as appropriate. Sustainability Risk Managers have
regional or national responsibilities for advising on and managing environmental and social risks. The Risk Function’s
responsibilities in relation to sustainability risk include:
• formulating sustainability risk policies. This includes overseeing our sustainability risk standards, our application of the
Equator Principles and our sustainability policies (covering agricultural commodities, chemicals, defence, energy, forestry,
freshwater infrastructure, mining and metals, and World Heritage Sites and Ramsar Wetlands); undertaking an independent
review of transactions where sustainability risks are assessed to be high; and supporting our operating companies to assess
similar risks of a lower magnitude;
• building and implementing systems-based processes to ensure consistent application of policies, reduce the costs of
sustainability risk reviews and capture management information to measure and report on the effect of our lending and
investment activities on sustainable development; and
• providing training and capacity building within our operating companies to ensure sustainability risks are identified and
mitigated consistently to either our own standards, international standards or local regulations, whichever is higher.