#1HSBC Climate Ambition Presentation to Investors November 2020 Noel Quinn, Group Chief Executive Daniel Klier, Global Head of Sustainable Finance HSBC#2Executive summary ◆ The transition to a low carbon, sustainable future represents one of the biggest opportunities and risks for the global economy and society at large A decade of change is required to deliver the Paris Agreement and the UN Sustainable Development Goals; Covid-19 accelerates this transformation The financial services sector has an important role to play to help enable the transition of the real economy, help countries address climate change while achieving prosperity and manage future climate risk HSBC aims to lead the transition to a sustainable future by aligning our financed emissions to net zero by 2050 and our own operations to net zero by 2030 ◆ We seek to support our customers with between $750billion and $1 trillion over the next 10 years in financing and investments and unlock next generation climate solutions ◆ We don't have all the answers but we believe we have the scale and reach to deliver change. We seek to work with our customers, policy makers, regulators, and the financial system to change HSBC and the wider economy 1#3Climate ambition is part of the Group's approach to Environment, Social, Governance (ESG) Environmental Social Governance TOOO 4000 HSBC's approach ◆ Seek to support the global transition to the low-carbon economy, through our own sustainable operations and by supporting our customers with their transition Ensure robust climate-related risk management covering sensitive sectors, such as energy, palm oil, and forestry ◆ Foster a customer and employee-centric approach to our business ◆ Focus on diversity and inclusion of our workforce, and strive to put the customer at the heart of everything we do Maintain highest standards of governance across all geographies ◆ Committed to protect our customers and communities through our financial crime risk management and cybersecurity diligence 1. Task Force on Climate-related Financial Disclosures Priorities # Low carbon transition non Our Our customers people Cyber security Our operational sustainability Ø Mental Diversity health Financial Crime Compliance ESG Governance and Reporting ESG Governance Dedicated ESG Steering Committee Periodic updates to the HSBC Holdings Board and Group Executive Committee Climate strategy managed by HSBC Climate Business Council Dedicated teams in each line of business and geography ESG Reporting Published 5 ESG reports since 2017 Rating upgraded by MSCI and Sustainalytics 3 years of TCFD¹ Disclosure The HSBC ESG report was awarded 'Best CSR/ESG Report' in 2019 at the Communicate magazine awards HSBC Holdings pk HSBC HSBC Holdingsplic HSBC HSBC Holdings pe wwwx 2#4Decade of change required to deliver the Paris Agreement and the UN Sustainable Development Goals Decade of change required... Sustainability means meeting the needs of the present without compromising the ability of future generations to meet their own needs Three internationally recognised frameworks help define sustainability goals Paris Agreement ESG framework ...accelerated by Covid-19 Government fiscal stimulus linked to climate goals ('build back better') 17 Ⓒ 1 M Sustainable Development Goals 1. Sourced from the HSBC Sustainable Financing and Investment Survey 2020 SSS M Companies transforming business models ('net-zero' commitments) Sustainability aligned investments outperforming in crisis Strategic agenda for investors and companies¹ 97% 93% 86% 55% 49% of companies expect to redeploy capital in response to environmental and social challenges and opportunities over the next 5 years of companies believe their capital providers care about environmental and social performance (shareholders, bondholders, bank lenders) of companies rate sustainability as somewhat important or very important of companies believe they are already affected by climate change or view it as a threat over the next 10 years of investors view risk/return as the primary driver for environmental and social engagement (versus 43% society's expectations and 41% regulation) Our role Help support the real economy in the transition to a low carbon, sustainable future ◆ Mobilise the capital required to finance the transition of our customers Help developed and developing countries address climate change while achieving prosperity and economic development Help manage the future risk of climate change for the financial system and society at large; enable a just transition 3#5HSBC has long been a leader in the transition to the low carbon economy and the mobilisation of sustainable finance Selected achievements since 2017 Sustainable finance volumes¹ $bn CAGR 11 2017 Cumulative from 2017: +48% 17 2018 28.5 24 2019 52.4 3Q20 Continued sustainable finance growth in 2020; ranked first globally in green, social and sustainability bonds league tables² ◆ Launched new products and propositions across business lines, including green loans for SMEs, sustainable supply chain finance and impact investments Sourced 36% of electricity from renewable energy as of end-2019 c.28k sustainability training modules completed by employees in 2020 Began integrating climate risk in annual credit reviews focussed on high risk sectors Provided industry leading research³ 1. Includes direct lending, financing facilitation and investments activities; reporting definitions and data dictionary available on www.hsbc.com 2. As per Dealogic excluding self-mandated issuances, 3Q 2020 year-to-date 3. Ranked first for Climate Change and first for SRI and Sustainability research by Extel survey, June 2019 Recent industry recognitions EUROMONEY AWARDS FOR EXCELLENCE 2020 The Banker Investment Banking Awards 2020 Environmental Finance Bond Awards 2020 'World's Best Bank for Sustainable Finance' (2nd consecutive year) Regional equivalent recognitions for Asia, Middle East and Western Europe 'Investment Bank of the Year for Sustainability' Additional recognitions for Green/Climate Action Bonds and Sustainable SSA Five award recognitions in total, three more than any other bank ◆ 'Lead manager of the year' recognition for Green Bond Bank and Sustainability Bond Bank, among others 4#6We have set out a three-part plan to help accelerate the transition to net zero through finance Becoming a net zero bank | What are our objectives? Align our financed emissions¹ to achieve net zero by 2050 or sooner Be net zero in our operations and supply chain by 2030 or sooner How will we do this? ☆ Use the Paris Agreement Capital Transition Assessment Tool (PACTA) Make regular, transparent TCFD disclosures to communicate progress Collaborate to establish globally consistent standards for financed emissions and carbon offsets Supporting our customers Support our clients in the transition to a sustainable future with $750bn to $1tn of financing and investment over the next 10 years Dedicated ESG Solutions Unit to support customers on their journey to lower carbon emissions Increase portfolio of transition finance solutions to help heavy- emitting sectors to decarbonise Apply a climate lens to our financing decisions across economies Unlocking new climate solutions Build one of the world's largest natural capital manager - HSBC Pollination Climate Asset Management Help transform sustainable infrastructure into a global asset class, and create a pipeline of bankable projects B Target $100m CleanTech investment within our technology venture debt fund Launch $100m philanthropic programme to scale climate innovation ventures (to 2025) FAST-Infra² initiative to establish sustainable infrastructure principles and investment vehicles 1. The carbon emissions associated with our portfolio of our customers 2. Finance to Accelerate the Sustainable Transition-Infrastructure ('FAST-Infra') in partnership with the IFC, the OECD, the Global Infrastructure Facility (World Bank), and Climate Policy Initiative under the auspices of the One Planet Lab 10 5#7Achieving Net Zero requires the transformation of the entire global economy The global challenge % of global GtCO₂ emissions, top 5¹ 26% # China US EU India Russia Electricity & Heat Transport Agriculture Land Use and Forestry Industrial Processes 1. World Resources Institute WRI 2. CDP 8% 7% 5% 13% 6% 7% 16% 12% 30% 100 companies are responsible for 70% of global GHG emissions² Our commitment to Net Zero 1 2 3 4 LO 5 Align our financed emissions to the Paris Agreement goal to achieve net zero by 2050 or sooner Work with our portfolio of customers to support them on their journey to lower carbon emissions Make regular, transparent, TCFD-aligned disclosures and encourage our customers to do the same Achieve net zero in our operations and supply chain by 2030 or sooner Work with peers, central banks and industry bodies to establish consistent standards to measure financed emissions and a functioning carbon offset market * metrics in development Performance metrics Operational sustainability Absolute CO₂e emissions (scope 1,2,3*) Renewable energy sourced as percent of total energy Financed emissions Balance sheet exposure to carbon intensive sectors ◆ Temperature alignment* Performance in different climate scenarios* Transition finance Volume of sustainable financing and investments provided League table positions and award recognitions System change Leadership roles in industry groups Industry-leading research 6#8Unprecedented financing need to support our customers in the transition $100trn investment required to 2030 globally across sectors¹ HSBC sustainable finance priorities to support Other emgerging Asia 1. India 6% 6% China 29% Middle East 5% Source: OECD and IEA 16% $100trn 2% 7% 7% Developed Asia 22% Transport Water and sanitation Telecoms Power transmission and distribution Primary energy supply chain Energy efficiency Europe US and Canada Latin America Africa Asia and emerging markets will lead this transformation, requiring >50% of required infrastructure investment 9% 14% 16% $100trn 9% 13% 39% INTERNAL Transition finance Sustainable infrastructure Sustainable investments Financing to enable companies' shift to sustainable, low-carbon activities Support and engagement for transition of hard- to-decarbonise industries Global network to promote sustainability across global supply chains Financing and advisory capabilities to grow renewable energy and related infrastructure Investment vehicles and origination-distribution mechanisms to channel investor capital Establish HSBC Asset Management as a leading provider of responsible investments ESG solutions and structured products for institutions Full suite of products to help individuals manage ESG risks and invest in sustainability related opportunities 7#9Leading change through our business activities and industry engagement Transactions (examples) Industry Engagement (examples) 1. Sharia-compliant bond 2. International Finance Corporation (IFC) Transition Finance Transition sukuk¹ ($600m) for an aviation firm to develop, manufacture or installation of energy efficient technologies, purchase assets that lead to energy savings, or R&D in sustainable aviation fuels Active collaboration with Energy Transition Commission (ETC) on industry reports focused on low-carbon transition in hard-to-abate sectors Sustainable Infrastructure Green financing facility ($486m) for the vital Viking Link high voltage electricity interconnector between the UK and Denmark enabling the effective use of renewable energy Established Future Cities as a core infrastructure theme, led by a Senior Advisor and expert on cities to inform and engage clients See Appendix for further examples O O Investments Launched Real Economy Green Investment Opportunity (REGIO) fund with IFC2 and raised $474m (Jun 2020) to fund green projects in developing economies that reduce emission and meet the UN SDGs Founding member and current chair of the One Planet Asset Manager Initiative, representing 14 global asset managers and various large sovereign wealth funds 8#10Unlocking new solutions to mobilise investments in nature and infrastructure HSBC Pollination Climate Asset Management What are the challenges? Natural capital key to limiting global temperatures to 1.5°C All value & service (social, economical) provided by natural capital not incorporated in valuation due to lack of observable prices What are the barriers to finance? ◆ Required investment estimated between US$300bn to US$400bn, however only US$52bn invested currently¹ ◆ Limited subject matter expertise in valuating natural capital ◆ Limited means to channel investment in natural capital Where do we see the opportunities? ◆ Create investment vehicles to connect capital to scalable nature based projects ◆ Diversify opportunities to invest in natural capital solutions, (sustainable forestry, blue carbon, coastal restoration etc.) Growing demand for carbon offsets; up to $1.4 trillion annually by 2050² 1. WWF (2020); Bankable Nature Solutions 2. Vivid Economics 3. OECD and IEA 4. World Economic Forum Finance to Accelerate the Sustainable Transition-Infrastructure (FAST-Infra) Infrastructure inherently carbon intensive $6.9 trillion investment required each year through 2030 to reduce carbon footprint of infrastructure and transform existing infrastructure systems³ ◆ Current investment gap of $3 trillion annually4 Number and scale of bankable projects globally remains inadequate No market agreed standards for institutional investors to assess sustainability of assets ◆ Transform sustainable infrastructure into a mainstream class in financial industry Establish a consistent, globally applicable labelling system that covers ESG and reporting standards Develop financial mechanisms that mobilise private investment and scale up successful projects across countries 9#11Embedding our climate strategy External Engagement ◆ Chapter Zero: Founding chair of Chapter Zero initiative, engaging non-executive directors of boards on climate change Sustainable Market Initiative: Mission led by HRH Prince of Wales; featuring CEO's of some of world's largest organisations - to lead the economy on a 'great reset' Institute of International Finance: Chair of Sustainable Finance working group M Aligning Incentives ◆ Integrated into scorecards: Incorporating metrics capturing progress made on climate ambitions in executive scorecards Establishing long term incentives: Environmental factors included in long term incentive plan of Executive Directors Internal Engagement Sustainable Champions: Network of Sustainable Champions across business functions and regions to drive transformation Training modules: Rollout of climate / sustainable finance modules to train frontline staff ◆ Thought leadership: Championing content on Centre of Sustainable Finance to drive engagement within frontline Increasing disclosure and integrating risk management Incorporating climate-related risk into how we managed and oversee risk Increase disclosure in line with TCFD commitments, including climate stress testing disclosure 10#12Our ambition to lead the transition to a sustainable future "HSBC has long been committed to opening up opportunities for our customers and the communities we serve. As we enter a pivotal decade of change, we have a landmark opportunity to accelerate our efforts to build a healthier, more resilient and more sustainable future. Our net zero ambition represents a material step up in our support for customers as we collectively work towards building a thriving low carbon economy.' 11 Noel Quinn, Group Chief Executive 11#13Appendix HSBC#14Supporting our clients through sustainable finance October 2020 الاتحاد ETIHAD AIRWAYS ABU DHABI Etihad USD 600m; 5 yr first ever "transition" sukuk bondi Joint coordinators, sustainability structuring agents, lead and bookrunner July 2020 版當代置業 FRAN Modern Land USD250m; 2yr Green Bond Promotes the transition to low-carbon and climate resilient growth Joint Lead Manager and Joint Bookrunner. June 2020 Republic of Indonesia. USD750m 5yr; Issuer's third Green Sukuk Joint Bookrunner May 2020 from Southern WATER for LIFE Water. Southern Water Services GBP375m & GBP450m 17yr; Issuer's inaugural Sustainability Bond Passive Bookrunner October 2020 MICHELIN Michelin EUR 2.5bn Multicurrency Revolving Credit Facility Sustainability Coordinator ; Joint Mandated Lead Arrangers and Bookrunner. July 2020 CIF GROUP W CIFI Group USD300m; Green Bond Proceeds for green buildings, clean transportation Joint Global Coordinator & Green Structuring Advisor June 2020 Région îledeFrance Ile de France EUR550m 10yr and EUR250m 20 yr; Proceeds for economic & ecological recovery plan Joint Bookrunner May 2020 COVID-19 CAF BANCO DE DESARROLLO DE AMÉRICA LATINA Corporacion Andina de Fomento (CAF) USD800m 3yr; Benchmark COVID-19 Response Bond Joint Bookrunner COVID-19 September 2020 الشركة السعودية للكهرباء Saudi Electricity Company Empowering Energy Saudi Electricity Company USD650m 5yr and USD650m 10yr Green Sukuk Joint Lead Manager and Green Structuring Advisor July 2020 O NongHyup Bank Nonghyup Bank USD500m 5yr Social Bond; proceeds to support SMEs affected by COVID-19 Joint Lead Manager June 2020 COVID-19 XMTR MTR Corp (CI) Ltd. CNY500m 1yr; HSBC's first led green CNY Private Placement Sole Bookrunner April 2020 CPP INVESTMENT BOARD CPP Investments EUR1bn 7yr; Proceeds allocated towards renewable energy, sustainable water and wastewater management Joint Bookrunner September 2020 站点控股有限公司 Beijing Enterprises Holdings Limited EUR500m 5yr Green Bond; naugural Green Bond Joint Global Coordinator, Joint Lead Manager and Bookrunner July 2020 TenneT Tennet EUR1bn; Green Hybrid. Bond; green corporate hybrid transaction Joint Structuring Adviser and Joint Active Bookrunner June 2020 Industrial Bank of Korea Industrial Bank of Korea ID² USD500m 5yr; Issuer's Covid-19 thematic Social bond Joint Bookrunner April 2020 LeasePlar LeasePlan COVID-19 EUR500m 5yr; Proceeds allocated towards Battery Electric Vehicles (BEV) projects Joint Bookrunner September 2020 MIZUHO Mizuho Financial Group. EUR500m 5yr Green Bond Joint Bookrunner July 2020 HF KOREA HOUSING FINANCE CORPORATION Korea Housing Finance Corporation EUR500m; Social Covered Bond to provide financing for low income households Joint Lead Manager June 2020 ICEPCO Korea Electric Power Corp USD500m 5yr; Issuer's second green bond Joint Bookrunner April 2020 ADB Asian Development Bank USD4.5bn 5yr; COVID-19 Response Benchmark Bond Joint Bookrunner COVID-19 September 2020 AIB AIB Group Plc EUR1bn 10.7yr Inaugural Green Bond Joint Bookrunner July 2020 China Construction Bank. China Construction Bank USD700m and USD500m Unsecured Green Bond Joint Global Coordinator, Lead Manager & Bookrunner May 2020 P Pearson Pearson GBP350m 10yr; Issuer's inaugural & 1st ICMA-aligned Corporate Education Bond Sole Structuring Advisor & Joint Bookrunner April 2020 eNGie ENGIE North America USD1.6bn; Largest tax equity financing in U.S for combined solar and wind portfolio Tax Equity Investor, LC Issuing Bank September 2020 Volkswagen EUR750m 12yr and EUR1.25bn 8yr Green Bond Joint Bookrunner. June 2020 Capco CAPCO USD350m 10yr; Issuer's second Energy Transition Bond | 青山發電有限公司 Castle Peak Power Co. Ltd. CAFF structuring advisor, Joint Bookrunner May 2020 NEOEN Neoen EUR170m 5yr; Issuer's inaugural & First Green. Convertible Bond in Europe Joint Bookrunner April 2020 IDB Inter-American Development Bank USD4.25bn 3yr; Proceeds to be used by countries to fight COVID-19 outbreak Joint Lead Manager COVID-19 September 2020 CHANEL Chanel EUR300m 5.9yr and EUR300m 10.9yr Sustainability-Linked Bond Joint Structuring Advisor and Joint Bookrunner June 2020 SQUARE Square Group USD118m 3yr; First Sustainability linked loan in Bangladesh Sole Arranger May 2020 ICO de Crii Oficial Instituto de Credito Oficial (ICO) EUR500m 4yr Joint Bookrunner April 2020 COVID-19 IBRD (World Bank) GBP1.5bn 3yr; Sustainable Devt. Bond, Proceeds to fight COVID-19 outbreak Joint Lead Manager COVID-19 Green bond Social bond August 2020 XMTR MTR USD1.2bn; MTR's 3rd USD Green Bond Issuance Joint Global Coordinator and Sole Sustainability Advisor June 2020 IsDB البنك الإسلامي للتنمية Islamic Development Bank IsDB USD 1.5bn 5yr; Issuer's Covid-19 thematic Sustainability Sukuk. Joint Lead Manager and Bookrunner COVID-19 May 2020 Region Wallonne EUR1bn 20yr; Issuer's inaugural Social Bond to finance expenditures related to COVID-19 Joint Lead Manager COVID-19 April 2020 Tesoro Público KINGDOM OF SPAIN Kingdom of Spain EUR15bn 10yr; Largest syndicated tranche in capital markets' history Joint Bookrunner COVID-19 Sustainability bond Green/ESG Linked Loan August 2020 IBRD (World Bank) USD3bn; 10yr Benchmark Sustainable Development Bond Joint Bookrunner June 2020 New Development Bank New Development Bank USD1.5bn 3yr; Issuer's Covid-19 thematic Social bond. Joint Bookrunner May 2020 AllB COVID-19 Asia Infrastructure Investment Bank. USD3bn 5yr; 1st Sustainable Development Bond, To aid COVID-19 facility Joint Lead Manager April 2020 COUNCIL OF LUROPL COVID-19 CONSLILUL CLUROPL Council of Europe (CoE) EUR1bn 7yr; Issuer's inaugural COVID-19 Response Social Inclusion Bond Joint Bookrunner COVID-19 13#15Operational Sustainability-Reducing environmental and carbon impacts Goals set in 2012 with 2020 targets¹ Reduce CO₂ emissions to 2.0 tonnes per FTE Reduce energy consumption by 1.2 MWh per FTE (-20% from baseline) Source 40% of energy from renewable PPAs² Reduce office waste by 75% from baseline; recycle 100% Reduce paper usage by 66% from baseline and buy 100% sustainably sourced 3.5 n/a n/a n/a 2.6 0.3 23.0 58.0 62.0 2.3 1.4 29.4 66.0 69.0 Net zero operation by 2030³ (announced October 2020) 1 2 3 Reduce 0.0 2011 2016 2019 1. Original targets set in 2012 stretched in April 2017 for CO₂ emissions per FTE, waste reduction and paper reduction; text refers to stretch targets 2. Power Purchase Agreement (PPA); original target of 25% increased to 40% in April 2017 and announced 100% target by 2030 in November 2017 3. We will continue to reduce other environmental impacts related to waste and paper which are also important in our operations Replace Resolve Continue to reduce emissions from direct operations and start reducing emissions from supply chain Engage with strategic suppliers through CDP Supply Chain Programme 2.3 Replace consumption with low carbon alternatives, where possible, such as PPAs or green tariffs for energy Replace current fleet to low carbon vehicles and support sustainable aviation fuel initiatives | Estimated decarbonisation of operational emissions CO₂ emissions by source, million tonnes 2 Remove remaining emissions from operations and supply chain by procuring high quality offsets supporting nature based solutions only once reduction and replacements initiatives are exhausted 2019 0.0 2030 Target Supply chain Travel and other Energy Offsets 14#16Climate aligned finance - Challenges and HSBC response Climate Alignment Commitment Methods: Which navigation tools should we use? 4 004 Competition: What if we act, but others maintain business as usual? Climate Alignment Pathway: Which should we take? 3 Data: How do we know if we're on track and where we need to go? 5 Real economy: How do we achieve <2°C alignment when investing in a 4°C world? 1. Challenges identified by the Center for Climate Aligned Finance 2. Network for Greening the Financial System (NGFS) 3. Partnership for Carbon Accounting Financials (PCAF) 4. Science Based Targets initiative (SBTi) 2 Pathway Methods 3 Data 5 4 Competition Real Economy Challenges¹ Different paths for real economy to transition to net ero Quantifying carbon footprint of portfolio (carbon accounting) Forward looking scenarios to inform decisions Lack of quality, decision-useful data to plug methods Limited availability of sufficiently granular data in certain sectors Need for collective action on climate alignment to move markets ◆ Ensure first-mover institutions are not penalised Achieving <2°C alignment difficult when investing in a 4°C world HSBC actions in response Set Net Zero ambition for 2050 or sooner Leverage NGFS2 scenarios and outputs of climate stress tests Onboarded PACTA; initial focus on carbon intensive sectors ◆ Engaging on methodology (PCAF³, SBTi4) to consider further Developing climate data and analytics capability ◆ Promoting increased disclosure and sector specific client questionnaires Work with peers, policy makers, and regulators to define standards and advance market development, e.g. through Sustainable Markets Initiative, IIF, and One Planet initiative Work with clients in hard to abate sectors Develop next generation climate solutions, e.g. nature, sustainable infrastructure 15#17Leadership roles and active engagement with network of regulators and industry bodies A Industry standards and principles ICMA International Capital Market Association The Green Bond Principles China's Belt and Road Initiative (BRI) ASIA PACIFIC LOAN MARKET ASSOC IATION APLIMA Loan Market Association The Social Bond Principles Sustainability Linked Loan Principle Green financial centres and regulatory engagement Bank of England Climate Risk Working Group HKGFA 香港綠色金融協會 Hong Kong Green Finance Association MAS GFC Monetary Authority of Singapore US Alliance for Sustainable Finance Financial services collaboration Climate Action 100+ Global Investors Driving Business Transition TCFD PLA and engagement 7 $ SOVEREIGN WEALTH FUNDS H IIF CFLI 84774 INSTITUTE OF INTERNATIONAL FINANCE WORLD ECONOMIC FORUM CLIMATE FINANCE LEADERSHIP INITIATIVE UNIVERSITY OF CAMBRIDGE INSTITUTE FOR SUSTAINABILITY LEADERSHIP Specific leadership roles ◆ Chair of Bank of England Climate Risk Working Group Chair of MAS Sustainable Finance Working Group Joint Coordinator of Transition Bond Working Group at ICMA ◆ Chair of Sustainable Working Group at IIF Global Steering Committee of Climate Action 100+ ◆ WEF CEO Climate Leaders ◆ Founding member of Climate Finance Leadership Initiative 16#18HSBC sustainable finance awards and recognitions EUROMONEY AWARDS FOR EXCELLENCE 2020 World's Best Bank for Sustainable Finance Asia's Best Bank for Sustainable Finance Middle East's Best Bank for Sustainable Finance Western Europe's Best Bank for Sustainable Finance EUROMONEY AWARDS FOR EXCELLENCE 2019 World's Best Bank for Sustainable Finance Middle East's Best Bank for Sustainable Finance Asia's Best Bank for Sustainable Finance tmi$ Treasury4Good AWARDS 2019 1. Supranational, sub-sovereign and agency (SSA) 2. Socially responsible investments (SRI) 3. Corporate Social Responsibility (CSR), and Diversity & Inclusion (D&l) Best CSR/ESG/D&1³ Thought Leadership Campaign Environmental Finance - Bond Awards 2020 Lead manager of the year: Green bond bank Lead manager of the year: Green bond SSA¹ Lead manager of the year: Sustainability bond local authority/ municipality; Lead manager of the year: Sustainability bond bank Lead manager of the year: Social bond SSA¹ Environmental Finance Bond Awards 2019 Winner Lead manager of the year: green bonds - local authority/municipality GlobalCapital SRI Awards Lead manager of the year: social bonds corporate Lead manager of the year: sustainability bonds - corporate Most Impressive Investment Bank for Asia Pacific Green/SRI2 Capital Markets "One bank stands out this year for its incessant drive to bring higher standards and capital to transition a broad range of sectors globally - HSBC." Euromoney Awards for Excellence, September 2020 The Banker Investment Banking Awards 2020 Investment Bank of the Year for Sustainability Investment Bank of the Year for Green/Climate Action Bonds Investment Bank of the Year for Sustainable SSA¹ EXTEL CMD Portal Awards - 2020 IDENTIFYING EXCELLENCE #1 Climate Change research team for 6 consecutive years #1 SRI2 and Sustainability #1 Integrated Climate Change #1 SRI2 Research Best SSA¹ ESG Dealer Best Corporate ESG Dealer 17#19Disclaimer Important notice The information, statements and opinions set out in this document are for informational and reference purposes only and do not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any securities or other financial instruments or any advice or recommendation in respect of such securities or other financial instruments. This document, which does not purport to be comprehensive nor render any form of legal, tax, investment, accounting, financial or other advice, has been provided by HSBC Holdings plc (together with its consolidated subsidiaries, the "Group") and has not been independently verified by any person. The information set forth herein is a summary and is qualified in its entirety by reference to our Environmental, Social and Governance Update 2019 ("ESG Update"). This document is not a part of or supplemental to our ESG Update. You should consult your own advisers as to legal, tax investment, accounting, financial or other related matters concerning any investment in any securities. No responsibility, liability or obligation (whether in tort, contract or otherwise) is accepted by the Group or any member of the Group or any of their affiliates or any of its or their officers, employees, agents or advisers (each an "Identified Person") as to or in relation to this document (including the accuracy, completeness or sufficiency thereof) or any other written or oral information made available or any errors contained therein or omissions therefrom, and any such liability is expressly disclaimed. No representations or warranties, express or implied, are given by any Identified Person as to, and no reliance should be placed on, the accuracy or completeness of any information contained in this document, any other written or oral information provided in connection therewith or any data which such information generates. No Identified Person undertakes, or is under any obligation, to provide the recipient with access to any additional information, to update, revise or supplement this document or any additional information or to remedy any inaccuracies in or omissions from this document. Past performance is not necessarily indicative of future results. Differences between past performance and actual results may be material and adverse. Forward-looking statements This document may contain projections, estimates, forecasts, targets, opinions, prospects, results, returns and forward-looking statements with respect to the financial condition, results of operations, capital position, strategy and business of the Group which can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "seek", "intend", "target" or "believe" or the negatives thereof or other variations thereon or comparable terminology (together, "forward-looking statements"), including the strategic priorities and any financial, investment and capital targets described herein. Any such forward-looking statements are not a reliable indicator of future performance, as they may involve significant stated or implied assumptions and subjective judgements which may or may not prove to be correct. There can be no assurance that any of the matters set out in forward-looking statements are attainable, will actually occur or will be realised or are complete or accurate. The assumptions and judgments may prove to be incorrect and involve known and unknown risks, uncertainties, contingencies and other important factors, many of which are outside the control of the Group. Actual achievements, results, performance or other future events or conditions may differ materially from those stated, implied and/or reflected in any forward-looking statements due to a variety of risks, uncertainties and other factors (including without limitation those which are referable to general market conditions or regulatory changes and due to the impact of COVID-19). Any such forward-looking statements are based on the beliefs, expectations and opinions of the Group at the date the statements are made, and the Group does not assume, and hereby disclaims, any obligation or duty to update, revise or supplement them if circumstances or management's beliefs, expectations or opinions should change. For these reasons, recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements. No representations or warranties, expressed or implied, are given by or on behalf of the Group as to the achievement or reasonableness of any projections, estimates, forecasts, targets, prospects or returns contained herein. Additional detailed information concerning important factors that could cause actual results to differ materially from this document is available in our Annual Report and Accounts for the fiscal year ended 31 December 2019 filed with the Securities and Exchange Commission (the "SEC") on Form 20-F on 19 February 2020 (the "2019 Form 20-F"), our 1Q 2020 Earnings Release furnished to the SEC on Form 6-K on 28 April 2020 (the "1Q 2020 Earnings Release"), our Interim Financial Report for the six months ended 30 June 2020 furnished to the SEC on Form 6-K on 03 August 2020 (the "2020 Interim Report") and our 3Q 2020 Earnings Release furnished to the SEC on Form 6-K on 27 October 2020 (the "3Q 2020 Earnings Release"). Non-GAAP financial information This document contains non-GAAP financial information. The primary non-GAAP financial measures we use are presented on an 'adjusted performance' basis which is computed by adjusting reported results for the period-on-period effects of foreign currency translation differences and significant items which distort period-on-period comparisons. Significant items are those items which management and investors would ordinarily identify and consider separately when assessing performance in order to better understand the underlying trends in the business. Reconciliations between non-GAAP financial measurements and the most directly comparable measures under GAAP are provided in our 2019 Form 20-F, our 1Q 2020 Earnings Release, our 2020 Interim Report, our 30 2020 Earnings Release and the corresponding Reconciliations of Non-GAAP Financial Measures document, each of which are available at www.hsbc.com. Information in this document was prepared as at 6 November 2020, unless otherwise stated. 18#2019