HSBC ESG Presentation Deck

Climate 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

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