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1、HSBC Annual Report and Accounts 2023HSBC Holdings plcAnnual Report andAccounts 2024HSBC Annual Report and Accounts 2023Accounts 2023Our ambition is to be the preferred international financial partner for our clients.Our purpose,ambition and values reflect our strategy and support our focus on execut

2、ion.Opening up a world of opportunityContentsStrategic report1 Performance in 20232 Highlights4 Who we are6 Group Chairmans statement 8 Group Chief Executives review11 Our strategy14 ESG overview20 Board decision making and engagement with stakeholders(Section 172(1)statement)24 Remuneration25 Finan

3、cial overview30 Global businesses37 Risk overview40 Long-term viability and going concern statementEnvironmental,social and governance(ESG)review42 Our approach to ESG44 Environmental75 Social87 GovernanceFinancial review100 Financial summary111 Global businesses and legal entities130 Reconciliation

4、 of alternative performance measuresRisk review136 Our approach to risk140 Top and emerging risks145 Our material banking risksCorporate governance report239 Biographies of Directors and senior management262 Board committees279 Directors remuneration reportFinancial statements318 Independent auditor

5、s report329 Financial statements341 Notes on the financial statementsAdditional information435 Shareholder information444 AbbreviationsHSBC Holdings plcAnnual Report andAccounts 2023Cover image:Opening up a world of opportunityWe connect people,capital and ideas across the world.By unlocking the tru

6、e power of our international networks,we are able to deliver our purpose of opening up a world of opportunity.This Strategic Report was approved by the Board on 21 February 2024.Mark E Tucker Group ChairmanA reminder The currency we report in is US dollars.Our approach to ESG reportingWe embed our E

7、SG reporting and Task Force on Climate-related Financial Disclosures(TCFD)within our Annual Report and Accounts.Our TCFD disclosures are highlighted with the following symbol:TCFD Constant currency performanceWe supplement our IFRS Accounting Standards figures with non-IFRS Accounting Standards meas

8、ures used by management internally that constitute alternative performance measures under European Securities and Markets Authority guidance and non-GAAP financial measures defined in and presented in accordance with US Securities and Exchange Commission rules and regulations.These measures are high

9、lighted with the following symbol:Further explanation may be found on page 29.IFRS 17 Insurance ContractsFrom 1 January 2023,we adopted IFRS 17 Insurance Contracts,which replaced IFRS 4 Insurance Contracts.Comparative data have been restated.For further details of our adoption of IFRS 17,see page 10

10、0.None of the websites referred to in this Annual Report and Accounts 2023 for the year ended 31 December 2023(including where a link is provided),and none of the information contained on such websites,are incorporated by reference in this report.Read more on our values and strategy on pages 4 and 1

11、1.HSBC Holdings plc Annual Report and Accounts 2023Strategic reportPerformance in 2023 Financial performance indicatorsOur financial performance indicators demonstrate our continued focus on the delivery of sustainable returns for our shareholders and providing a strengthened platform for growth.The

12、y also provide insight into the performance that has driven the outcomes of our financial targets.Read more on our financial performance in 2023 on pages 2 and 27.For an explanation of performance against our key Group financial targets,see page 25.For a reconciliation of our target basis operating

13、expenses to reported operating expenses,see page 133.For our financial targets we define medium term as three to four years and long term as five to six years,commencing 1 January 2024.Return on average tangible equity 14.6%(2022:10.0%)Profit before tax$30.3bn(2022:$17.1bn)Operating expenses$32.1bnT

14、arget basis operating expenses up 6%to$31.6bn(2022:$32.7bn)Common equity tier 1 capital ratio14.8%(2022:14.2%)Dividend per share$0.61(2022 dividend per share:$0.32)Strategic performance indicators Our strategy supports our ambition of being the preferred international financial partner for our clien

15、ts.We are committed to building a business for the long term,developing relationships that last.Read more on our strategy on pages 11 to 13.Read more on multi-jurisdictional client revenue on page 111.Read more on how we set and define our ESG metrics on page 16.Read more on our definition of sustai

16、nable finance and investment on page 49.We no longer report the metric Asia as a percentage of Group tangible equity.Net new invested assets$84bnGenerated in 2023,of which$47bn were in Asia.(2022:$80bn generated,of which$59bn were in Asia)Wholesale multi-jurisdictional client revenue 61%Wholesale cl

17、ient revenue generated by clients banking with us across multiple markets.Digitally active Commercial Banking customers83%(2022:78%)Gender diversity34.1%Women in senior leadership roles.(2022:33.3%)Sustainable finance and investment$294.4bnCumulative total provided and facilitated since January 2020

18、.(2022:$210.7bn)HSBC is one of the worlds leading international banks.We have a clear strategy to deliver revenue and profit growth,enhance customer service and improve returns to shareholders.HSBC Holdings plc Annual Report and Accounts 20231HighlightsFinancial performance reflected net interest in

19、come growth,and we continued to make progress against our four strategic pillars.Financial performance(vs 2022)Profit before tax rose by$13.3bn to$30.3bn,primarily reflecting revenuegrowth.This included a favourable year-on-year impact of$2.5bn relating to the sale of our retail banking operations i

20、n France,which completed on 1 January 2024,and a$1.6bn provisional gain recognised on the acquisition of Silicon Valley Bank UK Limited(SVB UK)in 2023.These were partly offset by the recognition of an impairment charge in 2023 of$3.0bn relating to the investment in our associate,Bank of Communicatio

21、ns Co.,Limited(BoCom),which followed the reassessment of our accounting value-in-use.On a constant currency basis,profit before tax increased by$13.8bnto$30.3bn.Profit after tax increased by$8.3bn to$24.6bn.Revenue rose by$15.4bn or 30%to$66.1bn,including growth in net interestincome(NII)of$5.4bn,wi

22、th rises in allof our global businesses due to the higherinterest rate environment.Non-interestincome increased by$10.0bn,reflectinga rise in trading and fair value income of$6.4bn,mainly in Global Banking andMarkets.The associated funding costsreported in NII grew by$6.2bn.The increasealso included

23、 the impact of the strategictransactions referred to above,partly offsetby disposal losses of$1.0bn relating torepositioning and risk management activitiesin our hold-to-collect-and-sell portfolio.Net interest margin(NIM)of 1.66%increased by 24 basis points(bps),reflecting higher interest rates.Expe

24、cted credit losses and other creditimpairment charges(ECL)were$3.4bn,a reduction of$0.1bn.The net charge in 2023 primarily comprised stage 3 charges,notably related to mainland China commercial real estate sector exposures.It also reflected continued economic uncertainty,rising interest rates and in

25、flationary pressures.ECL were33bps of average gross loans,including a 3bps reduction due to the inclusion of loans and advances classified as held for sale.Operating expenses fell by$0.6bn or2%to$32.1bn,mainly due to the non-recurrence of restructuring and other relatedcosts following the completion

26、 of our cost toachieve programme at the end of 2022.Thismore than offset higher technology costs,inflationary pressures and an increase inperformance-related pay.We also incurred ahigher UK bank levy and a charge relating tothe Federal Deposit Insurance Corporation(FDIC)special assessment in the US.

27、Target basis operating expenses roseby 6%.This is measured on a constantcurrency basis,excluding notable items andthe impact of the acquisition of SVB UK andrelated investments internationally.It alsoexcludes the impact of retranslating the prioryear results of hyperinflationary economiesat constant

28、 currency.Customer lending balances rose by$15bn on a reported basis,but fell by$3bn on a constant currency basis.Growth included a$7.8bn reclassification ofsecured loans in France from held for sale,an addition of$8bn from the acquisition ofSVB UK,and higher mortgage balances inHSBC UK and Hong Kon

29、g.These increaseswere more than offset by a reduction inwholesale term lending,notably in Asia,andfrom business divestments in Oman andNew Zealand.Customer accounts rose by$41bnon a reported basis,and$13bn on aconstant currency basis,primarily inWealth and Personal Banking,reflectinggrowth in Asia,p

30、artly offset by reductions inHSBC UK,reflecting cost of living pressuresand the competitive environment,despite anincrease of$6bn from the acquisition of SVBUK.There was also a reduction due to thesale of our business in Oman.Common equity tier 1(CET1)capitalratio of 14.8%rose by 0.6 percentagepoint

31、s,as capital generation was partlyoffset by dividends and share buy-backs.The Board has approved a fourth interimdividend of$0.31 per share,resulting in atotal for 2023 of$0.61 per share.We alsointend to initiate a share buy-back of up to$2.0bn,which we expect to complete by ourfirst quarter 2024 re

32、sults announcement.Outlook We continue to target a return onaverage tangible equity(RoTE)in themid-teens for 2024,excluding the impactof notable items(see page 25 for informationon our RoTE target for 2024).Our guidance reflects our current outlook for the global macroeconomic environment,including

33、customer and financial markets activity.Based upon our current forecasts,weexpect banking NII of at least$41bn for2024.This guidance reflects our currentmodelling of a number of market dependentfactors,including market-implied interestrates(as of mid-February 2024),as wellas customer behaviour and a

34、ctivity levels,which we would also expect to impact ournon-interest income.We do not reconcileour forward guidance on banking NII toreported NII.While our outlook for loan growth remainscautious for the first half of 2024,wecontinue to expect year-on-yearcustomer lending percentage growth in the mid

35、-single digits over the medium to long term.Given continued uncertainty in the forwardeconomic outlook,we expect ECL chargesas a percentage of average gross loansto be around 40bps in 2024(includingcustomer lending balances transferred toheld for sale).We continue to expect ourECL charges to normali

36、se towards a rangeof 30bps to 40bps of average loans over themedium to long term.We retain a Group-wide focus oncost discipline.We are targeting costgrowth of approximately 5%for 2024compared with 2023,on a target basis.This target reflects our current business plan for 2024,and includes an increase

37、 in staffcompensation,higher technology spendand investment for growth and efficiency,inpart mitigated by cost savings from actionstaken during 2023.Our cost target basis for 2024 excludes theimpact of the disposal of our retail bankingbusiness in France and the planned disposalof our banking busine

38、ss in Canada fromthe 2023 baseline.Our cost target basisis measured on a constant currency basisand excludes notable items and the impactof retranslating the prior year results ofhyperinflationary economies at constantcurrency.We do not reconcile our forwardguidance on target basis costs to reported

39、operating expenses.We intend to continue to manage theCET1 capital ratio within our medium-term target range of 14%to 14.5%.Our dividend payout ratio targetremains at 50%for 2024,excludingmaterial notable items and related impacts.We have announced a further share buy-back of up to$2.0bn.Further buy

40、-backsremain subject to appropriate capital levels.2HSBC Holdings plc Annual Report and Accounts 2023Strategic reportStrategic reportESG highlightsTransition to net zero In January 2024,we published our first netzero transition plan,which is an importantmilestone in our journey to achieving ournet z

41、ero ambition helping our people,customers,investors and other stakeholdersto understand our long-term vision,the challenges,uncertainties anddependencies that exist,the progresswe are making and what we plan to doin the future.The plan includes detailson our sectoral approach,and on ourimplementatio

42、n plan to embed net zeroacross key areas of our organisation.Our net zero transition plan provides anoverview of the progress we have made todate and what we plan to do next,althoughwe acknowledge there is still muchmore to do.It will form the basis of furtherwork on our journey to net zero over tim

43、e,and we expect to review and updateit periodically.Following the recent launch of thePartnership for Carbon AccountingFinancials(PCAF)accounting standardfor capital markets,we have now setcombined on-balance sheet financedemissions and facilitated emissionstargets for two emissions-intensivesectors

44、:oil and gas,and power andutilities,and report the combined progressfor both sectors.We recognise that data,methodologies and standards for measuringemissions and for target setting willcontinue to evolve.Since 2020,we have provided andfacilitated$294.4bn of sustainablefinance and investment,which w

45、as anincrease of$83.7bn in the past year.Of oursustainable finance and investment progressto 31 December 2023,$258.3bn related togreen and sustainable activities and$36.1bnrelated to social activities.Within our own operations,we havemade a 57.3%reduction in our absolutegreenhouse gas emissions from

46、 a2019 baseline.Build inclusion and resilience In 2023,34.1%of senior leadershiproles were held by women.We havea target to achieve 35%by 2025,whichwe are on track to achieve,although werecognise that progress in the past yearhas not been as fast paced as we wouldlike.We also continued to work towar

47、dsmeeting our ethnicity goals.We continue to make the bankingexperience more accessible in bothphysical and digital spaces.We areworking to ensure that our digital channelsare usable by everyone,regardless of ability.We also expanded our efforts to supportcustomers with disabilities in ourbranch spa

48、ces.Act responsibly We aim to be a top-three bank for customersatisfaction.In 2023,we were ranked as atop three bank against our competitorsin 58%of our six key markets acrossWealth and Personal Banking andCommercial Banking,but we still havework to do to improve our rank positionagainst competitors

49、.We published guides to help our buyersand our suppliers better understandour net zero ambitions.The guidesprovide further details to support suppliersin understanding our sustainabilityexpectations,as set out in our supplier codeof conduct.We continued to raise awareness anddevelop our understandin

50、g of our salienthuman rights issues.In 2023,weprovided practical guidance andtraining,where relevant,to our colleaguesacross the Group,on how to identify andmanage human rights risk.Strategic transactions During 2023,we continued to acquirebusinesses that allow us to build scale andenhance our capab

51、ilities.In March,weacquired SVB UK,and subsequentlylaunched HSBC Innovation Banking,which includes SVB UK and new teams inthe US,Hong Kong and Israel,as well as inDenmark and Sweden,to deliver a globallyconnected,specialised banking propositionto support innovation businesses andtheir investors.As p

52、art of our ambition to be a leadingwealth provider in Asia,we entered into anagreement to acquire Citis retail wealthmanagement portfolio in mainlandChina.This acquisition comprised theassets under management and deposits,and the associated wealth customers.Wealso announced a partnership with thefin

53、tech Tradeshift to launch a jointventure focusing on embedded finance solutions and financial services applications.We continue to make good progress onour strategic disposals.The planned saleof our banking business in Canada receivedgovernment approval and is expected tocomplete in the first quarte

54、r of 2024.Wecompleted the sale of our retail bankingoperations in France on 1 January 2024,aswe reshape the organisation to focus on ourinternational customer base.In addition,weannounced the planned sale of our retailbusiness in Mauritius,and also completedthe sale of our operations in Greece,theme

55、rger of HSBC Bank Oman with SoharInternational,and the sale of our NewZealand retail mortgage loan portfolio.While we remain committed to the sale ofour business in Russia,the sale became lesscertain.As a result,the business is no longer classified as held for sale,the previously recognised loss has

56、 been reversed,and a broadly offsetting charge relating to recoverability was recognised in the fourth quarter of 2023.We remain committed to considerthe payment of a special dividend of$0.21 per share as a priority use of theproceeds from the sale of our bankingbusiness in Canada in the first half

57、of2024.The remaining proceeds will accrueinto CET1 capital in consideration for organicgrowth and investment,and we intend touse any excess capital to supplementshare buy-backs.Upon completion,the saleis expected to result in an initial increasein the CET1 ratio of approximately 1.2percentage points

58、.HSBC Holdings plc Annual Report and Accounts 20233HighlightsWho we areOur valuesOur values help define who we are as an organisation,and are key to our long-term success.We value differenceSeeking out different perspectivesWe succeed togetherCollaborating across boundariesWe take responsibilityHold

59、ing ourselves accountable and taking the long viewWe get it doneMoving at pace and making things happenHSBC is one of the largest banking and financial services organisations in the world.We aim to create long-term value for our shareholders and capture opportunity.Our strategyOur strategy supports

60、our ambition of being the preferred international financial partner for our clients,centred around four key areas.Focus Maintain leadership inscale markets Double-downon internationalconnectivity Diversify our revenue Maintain cost disciplineand reshape ourportfolioDigitise Deliver seamlesscustomer

61、experiences Ensure resilience andsecurity Embrace disruptivetechnologies andpartner with innovators Automate and simplifyat scaleEnergise Inspire leaders todrive performanceand delivery Unlock our edge toenable success Deliver a unique andexceptional colleagueexperience Prepare our workforcefor the

62、futureTransition Support our customers Embed net zero into theway we operate Partner for systemicchange Become net zero inour own operationsand supply chain by2030,and our financedemissions by 2050For further details on progress made in each of our strategic areas,see pages 11 to 13.Our global reach

63、Our global businesses serve around 42 million customers worldwide through a networkthat covers 62 countries and territories.Our customers range from individual savers and investors to some of the worlds biggest companies,governments and international organisations.We aim to connect them to opportuni

64、ties and help them to achieve their ambitions.For further details of our customers and approach to geographical information,see page 110.Assets of$3.0tnApproximately 42mCustomers bank with usOperations in 62Countries and territoriesWe employ approximately 221,000Full-time equivalent staff4HSBC Holdi

65、ngs plc Annual Report and Accounts 2023Strategic reportStrategic report41%35%24%Wealth and Personal BankingCommercial BankingGlobal Banking and MarketsCustomersEmployeesInvestorsCommunitiesRegulators and governmentsSuppliersOur global businessesWealth and Personal Banking(WPB)We help millions of our

66、 customers look after their day-to-day finances and manage,protect and grow their wealth.Revenue by global business1Commercial Banking(CMB)Our global reach and expertise help domestic and international businesses around the world unlock their potential.Global Banking and Markets(GBM)We provide a com

67、prehensive range of financial services and products to corporates,governments and institutions.Building strong relationships with our stakeholders helps enable us to deliver our strategy in line with our long-term values,and operate the business in a sustainable way.Our stakeholders are the people w

68、ho work for us,bank with us,own us,regulate us,and live in the societies we serve and the planet we all inhabit.These human connections are complex and overlap.Many of our employees are customers and shareholders,while our business customers are often suppliers.We aim to serve,creating value for our

69、 customers and shareholders.Our size and global reach mean our actions can have a significant impact.We are committed to doing business responsibly,and thinking for the long term.This is key to delivering our strategy.Our stakeholdersWe serve our customers through three global businesses.1 Calculati

70、on is based on revenue of our global businesses excluding Corporate Centre.Corporate Centre had negative revenue of$199m in 2023.For further details of how we are engaging with our stakeholders,see page 15.For further details,see page 30.For further details,see page 32.For further details,see page 3

71、4.On pages 30 to 36 we provide an overview of our performance in 2023 for each of our global businesses,as well as our Corporate Centre.In each of our global businesses,we focus on delivering growth in areas where we have distinctive capabilities and have significant opportunities.Each of the chief

72、executive officers of our global businesses reports to our Group Chief Executive,who in turn reports to the Board of HSBC Holdings plc.HSBC Holdings plc Annual Report and Accounts 20235Who we areGroup Chairmans statementIn 2023,reported profit before tax was$30.3bn,which was an increase of$13.3bn co

73、mpared with 2022.This was due mainly to higher revenue and a number of notable items.Our three global businesses delivered good revenue growth,and we ended the year with strong capital,funding and liquidity positions.We remain committed to sharing the benefits of our improved performance with our sh

74、areholders.The Board approved a fourth quarterly dividend of$0.31 per share,bringing the total dividend for 2023 to$0.61 per share.Furthermore,in 2023 we announced three share buy-backs worth a total of$7bn and,today,have announced a further share buy-back of up to$2bn.The planned sale of our bankin

75、g operations in Canada received final approval from the Canadian government at the end of last year.Subject to completion of the transaction,which is expected in the first quarter of 2024,the Board will consider a special dividend of$0.21 per share,to be paid in the first half of 2024,as a priority

76、use of the proceeds.With this anticipated transaction and the completion of the sale of our retail banking business in France last month,our focus has moved to investing for growth,while maintaining efficiency.Two examples of growth opportunities last year were the agreed acquisition of Citis retail

77、 wealth business in mainland China,which will help accelerate our Wealth strategy,and the acquisition of SVB UK,following the difficulties experienced by its US parent entity.Acquiring SVB UK was opportunistic,but the deal made excellent strategic sense for HSBC,and it also helped to protect clients

78、,safeguard jobs and maintain financial stability.Technology and sustainability are two of the trends transforming banking and the world around us.The opportunities from generative AI are among the most transformative within my working life.We are actively exploring a number of use cases,while also w

79、orking to manage the associated risks.Meanwhile the global climate challenge is becoming increasingly acute.Our presence in many of the sectors and markets where the need to reduce emissions is the greatest provides us with an opportunity to work with our clients to help address it.This is set out i

80、n our first net zero transition plan.The Board discussed and contributed to the net zero transition plan in depth.We believe that it is a realistic and ambitious assessment of the long-term journey ahead,as we continue to work with our clients on their transitions to a low-carbon future.It is clear

81、there will be many uncertainties and dependencies,and that our approach will need to continue to evolve with the real world around us.The global economy performed better than expected in 2023,but growth remained sluggish and the economic environment was challenging for many of our customers.Although

82、 inflation fell globally,core inflation levels and interest rates remained elevated.There was also significant variability in growth from market to market and increased volatility within the banking sector.Our core purpose of opening up a world of opportunity underlines our focus on helping our cust

83、omers and clients to navigate this complexity and access growth,wherever it is.Mark E TuckerGroup ChairmanAgainst a challenging global economic and political backdrop,HSBCs strategy has delivered improved financial performance and increased returns for shareholdersMany of our customers and colleague

84、s are living through very difficult times.Higher interest rates have had a significant impact on businesses and households,and we will remain conscious of this with interest rates expected to begin to fall back in 2024.The wars between Russia and Ukraine,and now between Israel and Hamas,are absolute

85、ly devastating.Our thoughts are with all those impacted,including our colleagues in those parts of the world,and their families and friends.Their resilience,professionalism and care for one another during these most testing of times has been,and is,exceptional.Progress and performanceTurning to our

86、performance,I want to again pay tribute to my colleagues.The record profit performance that we delivered in 2023 was supported by the impact of interest rates on our strong balance sheet,but it was also testament to the tireless efforts of our people around the world.I would like to thank them since

87、rely for their hard work,dedication and commitment to serving our customers.6HSBC Holdings plc Annual Report and Accounts 2023Strategic reportStrategic reportWe also announced in December that David Nish intends to retire from the Board at the 2024 AGM.David has made an invaluable contribution to th

88、e Board over the past eight years,particularly in recent years as Chair of the Group Audit Committee and as Senior Independent Director.I would like to thank him warmly for his consistent counsel and guidance.I am pleased that Kalpana Morparia,Ann Godbehere,Brendan Nelson and Swee Lian Teo joined th

89、e Board during 2023.Each of them brings experience and expertise that is an asset to the Board.Specifically,Anns extensive public-listed company board experience means that she is ideally placed to take over as Senior Independent Director,while Brendans UK and international financial expertise and s

90、ignificant experience as audit chair at UK-listed companies will be particularly valuable as he takes over leadership of the Group Audit Committee.Macroeconomic outlookLooking ahead,2024 is likely to be another eventful year.The slowing of inflation in the second half of 2023 means that monetary tig

91、htening now appears to be coming to an end.However,current inflation levels in many economies remain above their targets.As central banks continue to try to bridge this gap,voters head to the polls in a significant number of countries across the globe.The timing and outcomes of these elections will

92、impact the decision making of governments and have geopolitical,as well as fiscal,implications.We will monitor the results closely,and take a long-term view of strategy,purpose and capital allocation,while cognisant of any short-term challenges.Among these potential challenges are the increased unce

93、rtainties due to wars in Europe and the Middle East,and disruption to global trade and supply chains caused by these and attacks on shipping in the Red Sea.However,we remain cautiously optimistic about economic prospects for 2024.We expect growth to slow in the first half of the year and recover the

94、reafter.We also expect the variable economic growth that has characterised recent years to continue.The economies of south and south-east Asia carry good economic momentum into 2024.India and Vietnam are currently among the fastest-growing economies in the world,benefiting from competitive labour co

95、sts,supportive policies and changing supply chains.Chinese companies are among those increasingly looking towards these and other markets,as Chinas economic transformation towards high-quality growth and domestic consumption continues.Chinas recovery after reopening was bumpier than expected,but its

96、 economy grew in line with its annual target of around 5%in 2023.We expect this to be maintained in 2024,with recently announced policy measures to support the property sector and local government debt gradually flowing through to the wider economy.Hong Kongs growth has moved along at a slower but h

97、ealthy pace and is likely to remain in line with pre-pandemic levels.As Asia continues to grow,a significant opportunity is emerging to connect it to another high-growth region.The Middle East region performed very well economically in 2023 and the outlook remains strong for 2024,notwithstanding the

98、 risks arising from conflicts in the region.As countries like Saudi Arabia and the UAE continue to diversify their economies,new opportunities are created to connect them to Asia,and Asia to them.The US economy grew more quickly than expected in 2023 in the face of higher interest rates.Growth is li

99、kely to be lower in 2024,although it should remain higher than in Europe where growth remains subdued.The UK economy,which entered a technical recession at the end of 2023,has nonetheless been resilient.Headline inflation should fall in the first half of the year,with core inflation following by the

100、 end of 2024.This will of course determine the pace of interest rate cuts.I would like to end by reiterating my thanks to my colleagues for all that they have done,and all that they continue to do,for HSBC.Their tireless efforts are reflected by our improved financial performance and increased retur

101、ns for shareholders in 2023 and I look forward to them securing the foundations for our future success.Mark E TuckerGroup Chairman21 February 2024”Acquiring SVB UK was opportunistic,but the deal made excellent strategic sense for HSBC,and it also helped to protect clients,safeguard jobs and maintain

102、 financial stability.”Board operationsOur work on sustainability was one of the many topics discussed with our shareholders at our 2023 Annual General Meeting(AGM)in May.Ahead of that,Noel and I were pleased to meet with Hong Kong shareholders at our Informal Shareholders Meeting.At both meetings,we

103、 also discussed the resolutions that were requisitioned by shareholders on the Groups strategy and dividend policy.Shareholders expressed strong support for the Groups current strategy by voting overwhelmingly with the Board and against these resolutions at the AGM.This enabled the Board,my colleagu

104、es and our shareholders to focus on our shared objectives of serving our customers,driving stronger performance,and creating more value for our investors.In 2023,the Board held meetings in London,Birmingham,Hong Kong,Paris,New York,Mumbai and Delhi.We also returned to Beijing and Shanghai last month

105、.On each occasion,the Board engaged with clients,colleagues,government officials and regulators with these discussions underlining that HSBC continues to have a key role connecting the worlds trade and finance hubs.There were a number of changes to the composition of the Board last year.At the 2023

106、AGM,we said farewell to Jackson Tai,who made an important,extensive and lasting contribution to the success of HSBC during his time as a non-executive Director.His leadership in strengthening risk and conduct governance and oversight was particularly critical through a period of significant change.H

107、SBC Holdings plc Annual Report and Accounts 20237Group Chairmans statementGroup Chief Executives review2023 was a very good year for HSBC.I would like to start by paying tribute to my colleagues for all that they did last year,and in the preceding three years.As I have said before,they have fully em

108、braced our core purpose of opening up a world of opportunity in all they do from helping clients and customers to expand to new markets or move overseas,to digitising our business and helping our people to be their best,to our ongoing work on the transition to net zero.Our performance last year was

109、great credit to them.We delivered strong revenue growth across all three global businesses,supported by higher interest rates,which enabled us to deliver our best return on average tangible equity in more than a decade.As well as improving financial performance,our strategy is increasing shareholder

110、 returns.I am pleased that we have rewarded our shareholders for their loyalty with the highest full-year dividend per share since 2008,as well as three sharebuy-backs in 2023 totalling$7bn.In total,we returned$19bn to shareholders by way of dividend and share buy-backs in respect of 2023.In additio

111、n,we have today announced a further share buy-back of up to$2bn.Our record profit performance in 2023 reflected the hard work of the last four years and the inherent strength of our balance sheet,supported by interest rates.Noel QuinnGroup Chief Executive As we move into 2024,I am confident that the

112、re are opportunities ahead for us and our clients that can help us to sustain our good performance going into the next phase of the interest rate cycle.The environment does,however,remain challenging.The wars in Europe and the Middle East are beyond comprehension on a human level,and my thoughts rem

113、ain with all those impacted.Both conflicts also still have the potential to escalate further.That would first and foremost deepen the humanitarian crisis,but also likely lead to another wave of market and economic turmoil.Interest rates are expected to fall this year,which we believe should in turn

114、help to increase economic activity.The outlook currently remains uncertain,however,and many of our customers remain concerned about their finances.In the midst of these challenges,we will stay focused on what we are here to do which is to serve our customers and clients,and help them with any financ

115、ial difficulties they face.Financial performanceOur results are a testament to the way we stayed focused in 2023.Reported profit before tax was$30.3bn,which was$13.3bn higher than in 2022.This included a number of notable items,including a favourable year-on-year impact of$2.5bn relating to the sale

116、 of our retail banking operations in France and a$1.6bn provisional gain on the acquisition of SVB UK.These were offset by a valuation adjustment of$3.0bn relating to our investment in BoCom,which followed the reassessment of our accounting value-in-use in line with recent market developments in mai

117、nland China.This adjustment has no material impact on our capital,capital ratio and distribution capacity,and therefore no impact on our share buy-backs or dividends.We remain confident in the resilience of the Chinese economy,and the growth opportunities in mainland China over the medium to long te

118、rm.Reported revenue grew by 30%or$15.4bn,driven by an increase in net interest income of$5.4bn from all three global businesses.Non-interest income increased by$10bn,reflecting increased trading and fair value income of$6.4bn,mainly in Global Banking and Markets,and the favourable year-on-year impac

119、t from the impairment relating to the sale of our retail banking operations in France and provisional gain on the acquisition of SVB UK.In 2023,we delivered a return on average tangible equity of 14.6%,or 15.6%excluding strategic transactions and the impairment on our investment in BoCom.Return on a

120、verage tangible equity 14.6%(2022:10%)Profit before tax$30.3bn(2022:$17.1bn)8HSBC Holdings plc Annual Report and Accounts 2023Strategic report Strategic reportOur three global businesses performed well.In Commercial Banking,profit before tax was up by 76%to$13.3bn on a constant currency basis,driven

121、 by revenue increases across all our main legal entities.Within this,Global Payments Solutions revenue increased by 78%or$5.4bn on a constant currency basis,driven by higher margins reflecting higher interest rates and repricing.Fee income increased by 4%due to growth in transaction banking and high

122、er volumes in cards and international payments,while our trade business performed well relative to the market and we increased our market share.Global Banking and Markets delivered profit before tax of$5.9bn,up 26%compared with 2022,on a constant currency basis.Revenue grew by 10%on a constant curre

123、ncy basis,due to higher net interest income in Global Payments Solutions and Securities Services.In Wealth and Personal Banking,profit before tax of$11.5bn was$6.1bn higher than in 2022,on a constant currency basis.Revenue was up by 31%or$6.4bn on a constant currency basis,reflecting growth in Perso

124、nal Banking and in Wealth,as well as the positive year-on-year impact relating to the sale of our French retail banking business.Within this,Wealth revenue of$7.5bn was up 8%or$0.6bn on a constant currency basis,with good growth in private banking and asset management.Reported costs for 2023 were do

125、wn by 2%compared with the previous year,as lower restructuring costs offset higher technology spending,inflation,higher performance-related pay and levies.On a target basis,costs increased by 6%,which was 1%higher than previously guided due to levies including a charge relating to the FDIC special a

126、ssessment levy in the US.Our reported cost-efficiency ratio improved to 48.5%from 64.6%in 2022,supported by higher net interest income.Our 2023 reported ECL charge of$3.4bn was$0.1bn lower than in 2022.This primarily comprised stage 3 net charges,notably related to mainland China commercial real est

127、ate sector exposures,and reflected the continued uncertainty within the global economy.After good capital generation in 2023,we ended the year with a CET1 ratio of 14.8%.We are able to pay a fourth interim dividend of$0.31 per share,bringing the total 2023 dividend to$0.61 per share,which is the hig

128、hest since 2008.From transform to sustain and growLooking forward,supportive interest rates and good underlying business growth have given us strong momentum.We continue to target a mid-teens return on average tangible equity.We are also,however,mindful of the interest rate cycle and the subsequent

129、impact on net interest income.In 2023,we increased the size and duration of our structural hedges to reduce the sensitivity of banking net interest income to interest rate movements and help stabilise future earnings.We also see a number of growth opportunities within our strategy that play to our s

130、trengths.The first is to further grow our international businesses,which remains our biggest differentiator and growth opportunity.International expansion remains a core strategy for corporates and institutions seeking to develop and expand,especially the mid-market corporates that HSBC is very well

131、-positioned to serve.Rather than de-globalising,we are seeing the world re-globalise,as supply chains change and intra-regional trade flows increase.Our international network and presence in markets that are benefiting like the ASEAN region and Mexico help us to capitalise on these trends.As a resul

132、t,our market-leading trade franchise facilitated more than$850bn of trade in 2023,while we are the second biggest payments company by revenue and we processed around$500tn of payments electronically in 2023.This helped to grow wholesale multi-jurisdictional client revenue from customers who bank wit

133、h us in more than one market,by 29%in 2023.With multi-jurisdictional corporate customers in Commercial Banking generating around five times as much client revenue as an average domestic customer,we continue to focus on growing this further,especially in the mid-market segment where we have a competi

134、tive advantage and there is still potential to further extend our market leadership.”I am confident that there are opportunities ahead for us and our clients that can help us to sustain our good performance going into the next phase of the interest rate cycle.”The second is to diversify our revenue.

135、Building our wealth business to meet the rising demand for wealth management services,especially in Asia,has been a strategic priority.Last year,we attracted net new invested assets of$84bn,following$80bn in 2022 and$64bn in 2021,underlining the traction that we have gained.Our agreement to acquire

136、Citis retail wealth management portfolio in mainland China helps accelerate our plans.Another trend is the increasing demand for seamless,integrated,cross-border banking services,which innovation is helping us to deliver.We now have 1.3 million Global Money customers,up from 550,000 in 2022,and grew

137、 revenue from Wealth and Personal Banking international customers by 41%last year,from$7.2bn to$10.2bn.Critically,there was a 43%increase in new-to-bank international customers compared with 2022,driven by the new international proposition that we launched and continue to develop.As in wholesale,the

138、se international customers generate higher revenue,bringing in around three times as much as average domestic-only customers.The third is continued growth in our two home markets.Our business is built on two very deep pools of liquidity in Hong Kong and the UK,which underpin our exceptional balance

139、sheet strength and,therefore,all that we do as a business.Hong Kong and the UK are both also very profitable,well-connected markets.We are well positioned to capitalise on our positions as the number one bank in Hong Kong and a leading bank in the UK.Hong Kongs connectivity,both globally and to main

140、land China,are helping us to grow our franchise.We have increased our market share in trade in Hong Kong by 6.6 percentage points over the last three years,according to HKMA data.Meanwhile new-to-bank customers in Hong Kong increased by 36%over the same period as we have capitalised on the return of

141、 visitors from mainland China.In the UK,we have good traction in Commercial Banking and continue to grow market share in Wealth and Personal Banking.We are the leading bank for UK large corporates,with more than 70%market penetration last year,according to Coalition Greenwich.Euromoney also named us

142、 as the best bank in the UK for small and medium-sized enterprises,as digitisation helped to grow new-to-bank clients through Kinetic.We also increased our market share of UK mortgage stock,from 7.4%in 2020 to 8%in 2023,according to Bank of England data.As economic conditions improve and we continue

143、 to invest,we are confident in our ability to grow further in these critical markets.HSBC Holdings plc Annual Report and Accounts 20239Group Chief Executives reviewWe have also continued to diversify our profit generation geographically across multiple markets.The positions that we have as a leading

144、 foreign bank in mainland China,India,Singapore,the UAE,Saudi Arabia and Mexico all of which are also well connected to our international network mean we are well placed to capture opportunities in these fast-growing economies.This was again evident as they all grew reported profits significantly in

145、 2023,with mainland China(excluding associates),India,and Singapore each contributing in excess of$1bn of profits to the Group.It is critical that we maintain tight cost discipline.This was challenging in 2023 in a high inflation environment,and will likely remain so in 2024.At the same time,we need

146、 to invest in growth,so we remain very focused on maintaining tight underlying costs.The sale of our French retail banking operations completed on 1 January 2024,and the planned sale of our banking business in Canada remains due to complete in the first quarter of 2024.A number of smaller exits rema

147、in underway as we continue to look at opportunities to reshape our portfolio.At the same time,our acquisition of SVB UK enabled us to create a bigger,new proposition in HSBC Innovation Banking,which combines deep sector specialisms with our balance sheet strength and global reach,ensuring we continu

148、e our long history of supporting entrepreneurs.Driving cost savings enables us to invest in technology,which is the fourth opportunity.The digitisation of our business continues to improve customer experience and increase efficiency.Using AI to help price complex structural options in our Foreign Ex

149、change business has cut execution times down from hours to minutes.We have also identified hundreds of opportunities to leverage generative AI,and will focus our efforts on use cases with tangible benefits for the Group and our customers.Innovation also creates new avenues for growth.We recently lau

150、nched Zing,which is our open market mobile platform focused on cross-border payments,initially available in the UK.It offers similar capabilities as Global Money does to our international Wealth and Personal Banking customers,but is targeted at non-HSBC customers and allows us to drive growth beyond

151、 our traditional customer footprint.Underpinning all of this is our work to build a stronger performance culture,improve colleague experience and prepare our workforce for the future.This is important because achieving our ambitions depends on our 220,000 colleagues feeling motivated and believing i

152、n our strategy.In our most recent staff survey,I was pleased that the number of colleagues seeing the positive impact of our strategy in 2023 was up 11 percentage points on 2020,which is also above the financial services sector benchmark.Finally,helping to finance the substantial investment needs of

153、 our customers in the transition to net zero is a growing commercial opportunity,as well as a necessity to mitigate rising financial and wider societal risks.Our first net zero transition plan shows how we intend to finance and support the transition to net zero and collaborate globally to help enab

154、le change at scale.It also sets out our roadmap for implementing net zero,which we will do by supporting our customers,embedding net zero into the way we operate and partnering for systemic change.We understand that our approach including our own transition plan will need to evolve over time to keep

155、 pace with both the evolving science and real economy decarbonisation across the sectors and geographies we serve.Thank youOn a personal note,one of the most enjoyable parts of 2023 for me was spending time with many of my colleagues around the world.Reconnecting with them,and seeing first-hand thei

156、r passion for serving our customers,pride in HSBC and ambitions for the future,was energising and inspiring.Leading HSBC is a privilege,and my colleagues are the main reason why.2023 was a very good year for HSBC.We now have an opportunity to ensure that it becomes part of a longer-term trend of ong

157、oing good performance and to secure the foundations for future success.I am confident that we have the opportunities,the platform and the team to enable us to get it done.Noel QuinnGroup Chief Executive21 February 2024In 2023,we continued to build in areas we expect to drive future growth.We brought

158、 in$84bn of net new invested assets in wealth.We grew multi-jurisdictional wholesale revenue by29%from$15.8bn in 2022 to$20.4bn in 2023.Future growth levers10HSBC Holdings plc Annual Report and Accounts 2023Strategic report|Group Chief Executives reviewStrategic reportMulti-jurisdictional customersD

159、omestic-only customersPercentage of wholesale revenue from multi-jurisdictional customersMulti-jurisdictional customers61%International customersDomestic-only customersPercentage of WPB revenue from international customersMulti-jurisdictional Non-resident and resident foreigner40%21%19%International

160、 customersWPB build our international and wealth propositionsWe continued to build our international and wealth propositions,taking advantage of the growth of wealth assets globally but especially in Asia.We amassed$84bn in net new invested assets in 2023,bringing total wealth invested assets to$1,1

161、91bn,an increase of 17%from 2022.In 2023,our international strategy generated good results.We continued to attract international customers,who are either multi-jurisdictional,non-resident or resident foreigners,from our top 11 markets1.We increased new-to-bank customers2 in this segment by 43%since

162、2022,bringing total international customers to 6.7 million.These customers also each generated approximately three times the income compared with domestic customers.As a result,we increased revenue in this segment by 41%compared with 2022.Customers increasingly demand seamless banking across geograp

163、hies.We continued to enhance Global Money,our mobile proposition that allows customers to spend and send money in multiple currencies.The product gained traction with more than 750,000 new customers in 2023,taking total customers to over 1.3 million.1 Top 11 markets include the UK,Hong Kong,Mexico,t

164、he US,India,Singapore,Malaysia,the UAE,Australia,mainland China and the Channel Islands and the Isle of Man.2 New-to-bank customers includes both new to bank customers and those customers who have opened an account in a new market,including those who already bank with us in one or more other markets

165、.Focus Wholesale double down on leadership in international connectivityOur strategyWe are implementing our strategy across the four strategic pillars aligned to our purpose,values and ambition.Our strategy remains anchored around our four strategic pillars:Focus,Digitise,Energise and Transition.We

166、delivered a good set of results in 2023 supported by the interest rate environment and the execution of our strategy.Our reported profit before tax was$30.3bn and we achieved a reported return on tangible equity of 14.6%,or 15.6%excluding the impact of strategic transactions and the impairment of ou

167、r investment in BoCom.In our global businesses,WPB revenue increased by 31%on a constant currency basis,including a favourable year-on-year impact relating to the sale of our retail banking business in France.In CMB,revenue increased by 40%on a constant currency basis,including a provisional gain on

168、 the acquisition of SVB UK.In addition,revenue in GBM increased by 10%on a constant currency basis.Our strength in international connectivity remains one of our key differentiators.We seek to partner with our clients as they expand internationally,and capitalise on opportunities arising from the rec

169、onfiguration of global supply chains.In 2023,we grew wholesale multi-jurisdictional client revenue1 by 29%since 2022,supported by the interest rate environment.These customers also generate more revenue with us.In CMB,multi-jurisdictional corporate clients generate approximately five times the reven

170、ue of a domestic-only corporate customer.In addition,there was increased collaboration across markets.In GBM,cross-border client revenue from clients managed in the West and booked in the East increased by 39%from 2022.Our ambition is to maintain strong,resilient returns through the interest rate cy

171、cle.As such,we are prioritising growing capital-light,fee-income generating businesses,such as transaction banking.In 2023,we processed around$500tn electronic payment transactions,ranking second by Global Payments Solutions revenue in the first half of 20232.We also facilitated over$850bn in trade

172、and have been ranked first in revenue since 20182.1 For further information and the basis of preparation for multi-jurisdictional client revenue,see page 134.2 Global Payments Solutions and trade revenue rankings sourced from Coalition Greenwich.HSBC Holdings plc Annual Report and Accounts 202311Our

173、 strategyIn addition to Hong Kong and the UK,five markets in particular represent growth opportunities for us.We aim to be the leader within the affluent and international customer segments in mainland China,India,Singapore and the UAE,and we are a market leader within retail banking in Mexico.These

174、 markets delivered strong results in 2023,with mainland China excluding BoCom,India and Singapore each delivering over$1bn in profit before tax.The UAE and Mexico each delivered profit before tax of over$0.8bn.Mainland ChinaWe have a strong client franchise in mainland China capitalising on our role

175、 as a bridge to support clients international needs.We were ranked number one in foreign exchange by FX Markets Asia in 2023.We entered into an agreement to acquire Citis retail wealth management portfolio,and supported by our expanded onshore Global Private Banking and our Pinnacle proposition,we g

176、rew our wealth invested assets by 53%compared with 2022.IndiaWe aim to continue growing our wholesale franchise by taking advantage of corporate supply chains.In 2023,we were ranked number one by Euromoney in cash management in India.We are also tapping into the wealth pools of the Indian diaspora w

177、ith the launch of onshore Global Private Banking.In 2023,we were the top foreign bank for non-resident Indians in wealth1.SingaporeOur ambition is to be the primary wholesale offshore booking centre and wealth hub within the ASEAN region.In 2023,we were recognised by AsiaMoney as the Best Internatio

178、nal Bank in Singapore.Additionally,we grew our retail franchise,with a 76%increase in new-to-bank WPB international customers compared with 2022,supported by the launch of our new customer onboarding journey.UAEWe are growing our institutional and international wholesale business from a strong found

179、ation.In 2023,we were ranked number one in equity and debt capital markets in MENAT2.Within wealth,following the launch of onshore Global Private Banking,we grew our wealth invested assets by 35%from 2022.We also grew international new-to-bank customers by 51%since 2022.MexicoWithin our wholesale bu

180、sinesses,we continue to capitalise on trade flows between Mexico and North America.In 2023,we were ranked number one by Euromoney within trade finance in Mexico.In our wealth and retail businesses,we remain focused on delivering improved customer experience and growing our Global Private Banking bus

181、iness.In addition,over half of WPB client acquisitions in 2023 were referred by the wholesale businesses through our Employee Banking Solutions proposition.Diversify our revenue1stForeign exchange ranking in mainland China Source:FX Markets Asia1stCash management ranking in India Source:Euromoney76%

182、Increase in new-to-bank WPB international customers in Singapore compared with 202235%Increase in wealth invested assets in the UAE compared with 202251%WPB client acquisition from wholesale referrals in Mexico1 Source:Indian Mutual Fund Industry2 Source:DealogicFocus continuedMaintain leadership in

183、 scale marketsWe continued to take advantage of our strengths,especially our leading positions in our scale markets:Hong Kong and the UK.Hong KongWe have a well established business in Hong Kong,with$544bn in customer deposits and market leadership in a number of product areas1.In 2023,profit before

184、 tax was$10.7bn,an increase of 80%on a reported basis.In our wholesale businesses,we focused on maintaining our leading position across multiple products.In trade finance,our market share was 25.7%,an increase of 6.6 percentage points from 20202.We also continued to solidify our leadership position

185、and grow our WPB business through the launch of a new Premier Elite proposition and acquisition of new customers,with new-to-bank WPB customers increasing by 36%from 2020,reaching 634,500 in 2023.HSBC UKHSBC UK has a universal franchise with$340bn in customer deposits.We are a market leader across m

186、ultiple CMB products,including trade finance and cash management,according to Euromoney and Coalition Greenwich.We aim to take advantage of our international network to maintain this position in CMB and grow our international presence in WPB.Profit before tax was$8.3bn in 2023,an increase of 84%on a

187、 reported basis,including a$1.6bn provisional gain on the acquisition of SVB UK.We continued to grow our CMB business and achieved a market penetration of more than 70%within the large corporate banking segment in 20233.In our WPB business,we opened over 1 million new current accounts and continued

188、to grow our mortgage stock market share in the UK,reaching 8.0%in 2023,an increase of 0.6 percentage points since 20204.634,500New-to-bank WPB customers in Hong Kong25.7%Share of the trade finance market in Hong Kong270%UK large corporate banking market penetration in 202338.0%HSBC UKs mortgage stoc

189、k market share41 Including deposits,assets,card spend and insurance.Source:Hong Kong Monetary Authority(HKMA),Hong Kong Insurance Authority.2 Source:HKMA,31 December 2023.3 Source:Coalition Greenwich Voice of Client 2023European Large Corporate Cash Management Study.4 Source:Bank of England.12HSBC H

190、oldings plc Annual Report and Accounts 2023Strategic report|Our strategyStrategic reportEnergise Inspire a dynamic culture We are opening up a world of opportunity for our colleagues by building an inclusive organisation that empowers and energises them.We intend to accomplish this by building a str

191、onger performance culture,improving colleague experience and preparing a workforce for the future.Our success is underpinned by our colleagues.In a changing world,we empower our colleagues by providing clarity of our strategy and opportunities for them to develop and have fulfilling careers.Our 2023

192、 employee Snapshot survey showed that 73%of our colleagues see the positive impact of our strategy,a 3 percentage point increase from 2022,and a 11 percentage point improvement from 2020.The survey also showed that 81%of our colleagues feel confident about HSBCs future,a 4 percentage point increase

193、from 2022,and also a 11 percentage point improvement over 2020.We remain focused on creating a diverse and inclusive environment.In 2023,34.1%of senior leadership roles were held by women,and we are on track to achieve our ambition of 35%by 2025.We also set a Group-wide ethnicity strategy to better

194、represent the communities we serve,with 3.0%of leadership roles in the UK and US held by colleagues of Black heritage in 2023,against our ambition of 3.4%by 2025.Additionally,in 2023,over 37.8%of our senior leaders have identified as being from an Asian heritage background.In the following ESG overv

195、iew section,we outline how we put our purpose and values into practice.TransitionSupport the transition to net zeroIn 2020,we set out our ambition to become a net zero bank by 2050.Since then,we have taken a number of steps to execute on our ambition and manage climate risks.In January 2024,we publi

196、shed our first net zero transition plan,which provides an overview of the progress we have made to date and the actions being taken and planned to embed our net zero ambition across HSBC.It sets out how we intend to harness our strengths and capabilities in the areas where we believe we can support

197、large-scale emissions reduction:transitioning industry,catalysing the new economy,and decarbonising trade and supply chains.To support our customers through the transition to net zero and to a sustainable future,in 2020,we set out an ambition to provide and facilitate$750bn to$1tn of sustainable fin

198、ance and investments by 2030.In 2023,we provided and facilitated$83.7bn of sustainable finance and investments,bringing our cumulative total since January 2020 to$294.4bn.As part of our ambition to align our financed emissions to achieve net zero by 2050,we have set on-balance sheet or combined fina

199、nced emissions targets for a number of emission-intensive sectors.Work continues on the integration of ESG and climate analysis into HSBC Asset Managements actively managed product offerings to help ensure the ESG risks faced by companies are considered when making investment decisions and to assess

200、 ESG risks and opportunities that could impact investment performance.We also made progress in our ambition to become net zero in our own operations and supply chain by 2030.In 2023,we reduced our absolute greenhouse gas emissions in our operations to 293,333 tonnes CO2e,which represents a 57.3%redu

201、ction from our 2019 baseline.For further details on our climate ambition,see the following ESG overview section.Digitise Improve customer experience and efficiency while investing in innovationIn 2023,we made progress on our goal to become a digital-first bank,and our customers have been increasingl

202、y adopting our digital services.In CMB,83%of customers were digitally active,an increase of 5 percentage points since 2022.Our net promoter score for onboarding wholesale international clients in the last quarter of 2023 improved by 12 points when compared with the first three months of the year.At

203、54%,more than half of WPB customers were mobile active,an increase of 6 percentage points from 2022.Furthermore,a total of 75%of WPBs international customer accounts were opened digitally in 2023,an increase of 30 percentage points from 2022.We are also focused on building future-ready business mode

204、ls by investing in open-market propositions.In 2023,we announced a partnership with Tradeshift to launch a new embedded finance solution in the first half of 2024,which will provide payment and financial services embedded into trade,e-commerce and marketplace experiences.In January 2024,in the UK we

205、 launched Zing,a mobile platform enabling cross-border payments available to non-HSBC consumers.We are also investing in innovative technologies for the future.In 2024,we plan to both concentrate our efforts and increase our investment in artificial intelligence(Al).At present,we employ Al in areas

206、such as fraud detection and transaction monitoring.We also launched Al Markets,a digital service that utilises natural language processing to enrich the way investors interact with global markets.Additionally,we are in the process of piloting numerous generative Al use cases in areas like developer

207、augmentation,creative content generation and knowledge management,and have identified hundreds more potential opportunities.In 2023,our costs were up by 6%on a target basis.Our aim is to maintain cost discipline by driving efficiencies in our operations and reinvesting cost savings in areas that wil

208、l drive future growth.We are prioritising investments in transaction banking,wealth and international propositions,and product innovation.At the same time,we continue to reshape our portfolio through exits and bolt-on acquisitions.We completed our exit from our retail banking operations in France,ou

209、r WPB business in New Zealand,and our businesses in Greece and Oman.Further exits from Canada,Russia and Armenia are underway as well as in our retail banking business in Mauritius.These exits will pave the way for investments in growth and efficiency areas such as HSBC Innovation Banking,which was

210、launched after the acquisition of SVB UK.We also entered into an agreement to acquire Citis retail wealth management portfolio in mainland China in August 2023,and completed our purchase of SilkRoad Property Partners,a real estate fund manager in January 2024,which will be integrated into our asset

211、management business.Focus continuedMaintain cost discipline and reshape our portfolioHSBC Holdings plc Annual Report and Accounts 202313Our strategyWe are taking steps to incorporate environmental,social and governance principles throughout the organisation,supporting the success of our customers,pe

212、ople and other stakeholders.Our approachWe are guided by our purpose:to open up a world of opportunity for our customers,colleagues and communities.Our purpose is underpinned by our values:we value difference;we succeed together;we take responsibility;and we get it done.Our approach to ESG is shaped

213、 by our purpose and values and a desire to create sustainable long-term value for our stakeholders.As an international bank with significant breadth and scale,we understand that our economies,societies,supply chains and peoples lives are interconnected.We recognise we can play an important role in h

214、elping to tackle ESG challenges.We focus our efforts on three areas:the transition to net zero,building inclusion and resilience,and acting responsibly.Transition to net zeroIn 2020,we set an ambition to become a net zero bank by 2050.Since then,we have made progress in support of this ambition incl

215、uding providing and facilitating sustainable finance and investment for our customers,updating several of our sustainability and investment risk policies,and setting 2030 targets for financed emissions in a range of high-emitting sectors.We recognise both the commercial opportunity of taking action

216、to transition to net zero and the potential risks of inaction by society at large.In our net zero transition plan,we provide an overview of the actions we are taking and plan to take to support our customers,embed net zero into the way we operate and partner for systemic change.We also set out how w

217、e are starting to work to integrate nature and just transition considerations into our net zero approach.We set out in more detail the steps we are taking on our climate ambitions in the ESG review on page 41.Build inclusion and resilienceTo help create long-term value for all stakeholders,we focus

218、on fostering inclusion and building resilience for our colleagues,our customers and the communities we operate within.For colleagues,we focus on creating an inclusive,healthy and rewarding environment as this helps us to attract,develop and retain the best talent,and we support their resilience thro

219、ugh well-being and learning resources.We continue to make progress towards our goals for gender and ethnic diversity.We strive to provide an inclusive and accessible banking experience for our customers.We do this by providing resources that help them manage their finances,and services that help the

220、m protect what they value.We are developing an updated global philanthropy strategy that aligns with our ESG areas of focus:transition to net zero and building inclusion and resilience.Act responsiblyWe are focused on operating a strong and sustainable business that puts the customer first,values go

221、od governance,and gives our stakeholders confidence in how we do what we do.Our conduct approach guides us to do the right thing and to focus on the impact we have on our customers and the financial markets in which we operate.Customer experience is at the heart of how we operate.We aim to act respo

222、nsibly and with integrity across the value chain.On page 15,we have set out ways that we have supported our stakeholders through a challenging year.ESG overviewESG disclosure map and directoryTransition to net zeroOur approach to the transitionRead more on our approach to the transition to net zero

223、Page 45Supporting our customersRead more on our progress made against our$750bn to$1tn sustainable finance and investment ambition Page 49Read more on our progress made against our ambition to achieve net zero in our financed emissions by 2050 Page 53Embedding net zero into the way we operateRead mo

224、re on our ambition to achieve net zero in our own operations and supply chain by 2030 Page 63Partnering for systemic changeRead more on how we partner externally in support of systemic change Page 68Detailed Task Force on Climate-related Financial Disclosures(TCFD)We make disclosures consistent with

225、 Task Force on Climate-related Financial Disclosures(TCFD)recommendations,highlighted with the symbol:TCFD Page 69Build inclusion and resilienceDiversity and inclusion disclosures Read more on how we are building an inclusive environment that reflects our customers and communities,and our latest pay

226、 gap statistics Page 76Pay gap disclosures Page 77Act responsiblyHow we govern ESG Read more on our approach to ESG governance and human rights Page 88 Page 89Human rights and modern slavery disclosuresHow our ESG targets link to executive remunerationRead more on our ESG targets embedded in executi

227、ve remuneration Page 16 Pages 284 to 298ESG Data PackDetailed ESG information Our ESG Data Pack provides more granular ESG information,including the breakdown of our sustainable finance and investment progress,and complaints Holdings plc Annual Report and Accounts 2023Strategic report|ESG overviewSt

228、rategic reportEngaging with our stakeholders and our material ESG topicsWe know that engaging with our stakeholders is core to being a responsible business.To determine material topics that our stakeholders are interested in,we conduct a number of activities throughout the year,including engagements

229、 outlined in the table below.Disclosure standards such as the TCFD,World Economic Forum(WEF)Stakeholder Capitalism Metrics and Sustainability Accounting Standards Board(SASB),as well as the ESG Guide under the Hong Kong Stock Exchange Listing Rules and other applicable rules and regulations,are cons

230、idered as part of the identification of material issues and disclosures.Supporting our customers in challenging economic timesWe know that many of our customers continue to face difficult financial circumstances due to cost of living pressures,and we are working to support them.As the rising cost of

231、 living has been particularly high in the UK,one of our largest markets,most of our initiatives focused on supporting our UK personal and business customers.We have enhanced our range of digital resources available on our website and we are proactively approaching those most in need both personal an

232、d business customers to offer targeted support and help build their financial resilience.Proactive supportFor personal customers in financial difficulty,we have developed our digital services with improvements to the Rising cost of living hub on our public website in the UK.Use of segmentation data

233、has enabled us to take a proactive approach to supporting customers and offering targeted solutions to those who are identified as being most in need.We have engaged with vulnerable customer groups through cost of living calls,targeted emails and direct mail.In 2023,we also:offered customers the opt

234、ion to switch mortgage rates early,extend their mortgage term with an option to reverse it at a later date,or pay interest only for six months,as part of our commitment to the new UK Mortgage Charter;offered a temporary reduction of fees on arranged overdrafts to help those most in need pay less;hel

235、d over 1,000 financial well-being webinars,including 227 cost of living sessions for 50,000 customers and colleagues;helped more than 37,000 customers identify 2.9m in potential benefits by providing access to a benefits calculator tool via our website;and helped more than 130,000 customers generate

236、 a financial fitness score,and obtain tips on how to improve their financial resilience using our online financial fitness tool.In the UK,CMB has continued to support commercial banking clients exhibiting signs of financial vulnerability.We reviewed client needs on a case-by-case basis and provided

237、solutions including repayment holidays,extending loan repayments and offering extensions to collection periods.The use of data and front-line insights has improved our ability to identify financially vulnerable customers.In 2023,we contacted targeted clients to help improve awareness of the support

238、available,including communicating with over 178,000 SMEs and proactively making over 43,000 outbound calls.Increasing understanding of fraud and scam risk and education on how to protect against becoming a victim continues to be another key area of focus.In 2023,we also:held fraud and scam awareness

239、 webinars to highlight recent trends and case studies,attended by approximately 4,300 customers;sent 2.1 million emails and 300,000 letters in quarterly campaigns to share our insights and enhance understanding of key fraud topics and trends;and published 44 articles and alerts on the HSBC Fraud and

240、 Cyber Awareness mobile app,covering a broad range of topics as well as any emerging threats and trends.For further details of our work to support vulnerable communities and customers see page 85.For further details on our conduct and product responsibilities,see the ESG review on page 96.Our stakeh

241、oldersHow we engageMaterial topics highlighted by the engagement1CustomersOur customers voices are heard through our interactions with them,surveys and by listening to their complaints.Customer advocacy Cybersecurity Employee training Diversity and inclusion Employee engagement Supporting our custom

242、ers financed emissions Embedding net zero into the way we operate Sustainability risk policies,including thermal coal phase-out policy and energy policy Net zero transition plan Financial inclusion and community investment Climate risk Anti-bribery and corruption Conduct and product responsibility S

243、upply chain management Human rightsEmployeesOur colleagues voices are heard through our annual Snapshot survey,Exchange meetings,global jams,townhalls,leadership summits,and our speak-up channels,including our global whistleblowing platform,HSBC Confidential.InvestorsWe engage with our shareholders

244、through our AGMs,virtual and in-person meetings,investor roadshows,conferences and our annual investor survey.CommunitiesWe engage with non-governmental organisations(NGOs),charities and other civil society groups through forums,summits and roundtables supporting ESG causes such as COP28.We engage d

245、irectly on specific issues by taking part in working groups.Regulators and governmentsWe proactively engage with regulators and governments to build strong relationships through virtual and in-person meetings and by responding to consultations individually and jointly via industry bodies.SuppliersOu

246、r code of conduct sets out our ambitions,targets and commitments on the environment,diversity and human rights,and outlines the minimum standards we expect of our suppliers.We engage with key suppliers in real estate,technology and other sectors through meetings.1 These form part of our ESG disclosu

247、res suite together with other requirements,and are not exhaustive or exclusive to one stakeholder group.For further details of our disclosures,see our ESG review and ESG Data Pack,as well as our ESG reporting centre at Holdings plc Annual Report and Accounts 202315ESG overviewOur ESG ambitions,metri

248、cs and targets TCFDWe have established ambitions and targets that guide how we do business,including how we operate and how we serve our customers.These include targets designed to help track our progress against our environmental and social sustainability goals.They also help us to improve employee

249、 advocacy and the diversity of senior leadership,as well as strengthen our market conduct.The targets for these measures are linked to the pillars of our ESG strategy:transition to net zero,building inclusion and resilience,and acting responsibly.To help us achieve our ESG ambitions,a number of meas

250、ures are included in the annual incentive and long-term incentive scorecards of the Group Chief Executive,Group Chief Financial Officer and Group Executives that underpin the ESG metrics in the table below.For a summary of how all financial and non-financial metrics link to executive remuneration,se

251、e pages 284 to 298 of the Directors remuneration report.The table below sets out some of our key ESG metrics that we use to measure our progress against our ambitions.For further details of how we are doing,see the ESG review on page 41.Sustainable finance and investment2$294.4bn Cumulative total pr

252、ovided and facilitated since January 2020.(2022:$210.7bn)Ambition:Provide and facilitate$750bn to$1tn of sustainablefinance and investment by 2030.Net zero in our own operations357.3%Reduction in absolute operational greenhouse gas emissions from 2019 baseline.(2022:58.5%)Ambition:To be net zero in

253、our own operations and supply chain by 2030.Financed emissions47 sectors Number of sectors where we have set financed emissions targets,comprising five on-balance sheet and two combined financed emissions targets.Ambition:Align our financed emissions to achieve net zero by 2050.1 For further details

254、 of our approach to transition to net zero,methodology and PwCs limited assurance reports on financed emissions,sustainable finance and investment progress,and our own operations scope 1,2 and 3(business travel and supply chain)greenhouse gas emissions data,see In October 2020,we announced our ambit

255、ion to provide and facilitate between$750bn to$1tn of sustainable finance and investment by 2030.For further details and breakdown,see the ESG review on page 49.For details of how this target links with the scorecards,see page 284.3 This absolute greenhouse gas emission figure covers scope 1,scope 2

256、 and scope 3 business travel emissions.For further details of how this target links with the scorecards,see page 284.4 See page 53 for further details of our targets,which include combined on-balance sheet financed emissions and facilitated emission targets for two emissions-intensive sectors:oil an

257、d gas,and power and utilities.The remaining five sectors for which we have set on-balance sheet financed emissions targets are:cement;iron,steel and aluminium;aviation;automotive;and thermal coal mining.5 Senior leadership is classified as those at band 3 and above in our global career band structur

258、e.For further details,see the ESG review on page77.For details of how this target links with the scorecards,see page 284.Colleagues in Canada are excluded from this disclosure to align with scorecards.6 For further details,see the ESG review on page 79.For details of how this target links with the s

259、corecards,see page 284.7 The completion rate shown relates to the Fighting financial crime training module in 2023 and covers permanent and non-permanent employees.The latest global conduct training Conduct matters and taking responsibility 2023 was launched in December 2023 and will run through the

260、 first quarter.8 The markets where we report rank positions for WPB and CMB the UK,Hong Kong,mainland China,India,Mexico and Singapore are in line with the annual executive scorecards.Our WPB NPS ranking in mainland China is based on 2022 results.Due to data integrity challenges,we are unable to pro

261、duce a 2023 ranking.For further details of customer satisfaction,see the ESG review on page91.For further details of how this target links with the scorecards,see page 284.Gender diversity534.1%Senior leadership roles held by women.(2022:33.3%)Ambition:Achieve 35%senior leadership roles held by wome

262、n by 2025.Black heritage53.0%Senior leadership roles held by Black heritage colleagues in the UK and US combined(2022:2.5%)Ambition:3.4%of senior leadership roles held by Black heritage colleagues in the UK and US combined by 2025.Employee engagement677%Employee engagement score.(2022:74%)Ambition:M

263、aintain 72%in the employee Snapshot engagement index.Conduct training798%Employees who completed conduct training in 2023.(2022:98%)Target:At least 98%of employees complete conduct and financial crime training each year.Customer satisfaction8 3 out of 6WPB markets that sustained top-three rank and/o

264、r improved in customer satisfaction.(2022:4 out of 6)Target:To be ranked top three and/or improve customer satisfaction rank.5 out of 6CMB markets that sustained top-three rank and/or improved in customer satisfaction.(2022:5 out of 6)Target:To be ranked top three and/or improve customer satisfactio

265、n rankEnvironmental:Transition to net zero1 Social:Build inclusion and resilienceGovernance:Acting responsibly16HSBC Holdings plc Annual Report and Accounts 2023Strategic report|ESG overviewStrategic reportTask Force on Climate-related Financial Disclosures(TCFD)TCFDThe Financial Stability Boards Ta

266、sk Force on Climate-related Financial Disclosures(TCFD)recommendations set an important framework for understanding and analysing climate-related risks,and we are committed to regular and transparent reporting to help communicate and track our progress.We will advocate the same from our customers,su

267、ppliers and the industry.We have set out our key climate-related financial disclosures throughout the Annual Report and Accounts 2023 and related disclosures.We recognise that further work lies ahead as we continue to develop our management and reporting capabilities.In 2023,we made certain enhancem

268、ents to our disclosures.These include enhancing our merger and acquisition process to consider potential climate and sustainability-related targets,net zero transition plans and climate strategy,and how this relates to HSBC.In addition,we published our net zero transition plan.We have considered our

269、 comply or explain obligation under both the UKs Financial Conduct Authoritys Listing Rules and Sections 414CA and 414CB of the UK Companies Act 2006,and confirm that we have made disclosures consistent with the TCFD Recommendations and Recommended Disclosures,including its annexes and supplemental

270、guidance,save for certain items,which we summarise below.For financed emissions we do not plan to set 2025 targets.We set targets in line with the Net-Zero Banking Alliance(NZBA)guidelines by setting 2030 targets.While the NZBA defines 2030 as intermediate,we use different time horizons for climate

271、risk management.For climate,we define short term as time periods up to 2025;medium term is between 2026 and 2035;and long term is between 2036 and 2050.These time periods align to the Climate Action 100+disclosure framework.In 2023,we disclosed interim 2030 targets for financed emissions for a numbe

272、r of sectors as we outline on page 18.Following this,we have now set combined on-balance sheet financed emissions and facilitated emissions targets for two emissions-intensive sectors:oil and gas,and power and utilities.The methodology and data used for financed emissions is evolving and we expect i

273、ndustry guidance,market practice,data availability,scenarios and regulatory disclosure requirements to continue to change,along with the shape of our own business.We expect to periodically review and,if required,update our methodologies,baselines,scenarios,and targets to reflect real economy decarbo

274、nisation and evolving guidance and data.We do not fully disclose impacts from climate-related opportunities on financial planning and performance including on revenue,costs and the balance sheet,quantitative scenario analysis,detailed climate risk exposures for all sectors and geographies or physica

275、l risk metrics.This is due to transitional challenges in relation to data limitations,although nascent work is ongoing in these areas.We expect these data limitations to be addressed in the medium term as more reliable data becomes available and technology solutions are implemented.We currently disc

276、lose four out of 15 categories of scope 3 greenhouse gas emissions including business travel,supply chain and financed emissions.In relation to financed emissions,we publish on-balance sheet financed emissions for a number of sectors as detailed on page 18.We also publish facilitated emissions for t

277、he oil and gas,and power and utilities sectors.Future disclosures on financed emissions and related risks are reliant on our customers publicly disclosing their greenhouse gas emissions,targets and plans,and related risks.We recognise the need to provide early transparency on climate disclosures but

278、 balance this with the recognition that existing data and reporting processes require significant enhancements.For a full summary of our TCFD disclosures,including detailed disclosure locations for additional information,see pages 69 to 74.The additional information section on page 440 provides furt

279、her detail.Backing renewable connections in South AmericaWe helped to finance one of the largest transmission lines in South America,which will connect central and southern Chile to renewable energy generated in the north.Conexin is building the Kimal-Lo Aguirre initiative after winning a tender fro

280、m Chiles Minister of Energy in 2022.The project will aim to develop approximately 1,400km of critical infrastructure with the ability to carry up to 3,000 million watts of energy when scheduled to complete in 2029.We provided a$160m equity bridge loan to support China Southern Power Grids contributi

281、on to the project.China Southern Power Grid is the second largest electric power company in China.The funds will help unlock energy transition infrastructure required to support Chile in achieving its net zero goals.HSBC Holdings plc Annual Report and Accounts 202317ESG overviewNet zero implementati

282、on planMetrics and indicatorsProgress to dateSupporting our customersSustainable finance and investment provided and facilitated($bn)1$294.4bn cumulative progress since 2020(for further breakdown see page49)Number of sectors analysed for financed emissions2We have set seven financed emissions target

283、s,comprising five on-balance sheet and two combined financed emissions targets so far(see pages 53 to 62)Thermal coal financing exposures2,3Our thermal coal financing drawn balance exposure was approximately$1bn as at 31 December 2020(for further details,see page 67)Embedding net zero into the way w

284、e operatePercentage of absolute operational greenhouse gas emissions reduced457.3%reduction in absolute greenhouse gas emissions from 2019 baseline(see page 63)Percentage of renewable electricity sourced across our operationsIncrease from 48.3%in 2022 to 58.4%(see page 63)Percentage of energy consum

285、ption reduced26.3%reduction in energy consumption from 2019 baseline (see page 63)Partnering for systemic changePhilanthropic investment in climate innovation ventures,renewable energy,and nature-based solutionsCommitted$105m to our NGO partners since 2020,as part of the Climate Solutions Partnershi

286、p(see page 68)1 The detailed definitions of the contributing activities for sustainable finance and investment are available in our revised Sustainable Finance and Investment Data Dictionary 2023.For this,together with our ESG Data Pack and PwCs limited assurance report,see For further details of ou

287、r financed emissions methodology,exclusions and limitations,see our Financed Emissions and Thermal Coal Exposures Methodology at Data is subject to independent limited assurance by PwC in accordance with ISAE 3000/ISAE 3410.For further details,see our Financed Emissions and Thermal Coal Exposures Me

288、thodology and PwCs limited assurance report at Our reported scope 3 greenhouse gas emissions of our own operations in 2023 are related to business travel.For further details on scope 1,2 and 3,and our progress on greenhouse gas emissions and renewable energy targets,see page 64 and our ESG Data Pack

289、 at further details of our methodology and PwCs limited assurance report,see we measure our net zero progress TCFDWe are helping the transition to a net zero economy by transforming ourselves,and supporting our customers to make their own transitions.Our ambition is to align our financed emissions t

290、o net zero by 2050 or sooner.Our net zero transition plan sets out how we intend to harness our strengths and capabilities in areas where we believe we can support large-scale emissions reduction:transitioning industry,catalysing the new economy,and decarbonising trade and supply chains.The plan als

291、o provides details on our sectoral approach,and on our implementation plan to embed net zero into the way we operate.We continue to track our progress against our ambition to provide and facilitate$750bn to$1tn of sustainable finance and investment by 2030,aligned to our published data dictionary,an

292、d our ambition to achieve net zero in our own operations and supply chain by 2030.We also recognise that green and sustainable finance and investment taxonomies are not consistent globally,and evolving taxonomies and practices could result in revisions in our sustainable finance reporting going forw

293、ard.To date,we have set 2030 financed emissions targets across energy,heavy industry and transport,specifically for the following sectors:oil and gas;power and utilities;cement;iron,steel and aluminium;aviation;automotive;and thermal coal mining.Following a reduction in our exposure to the shipping

294、sector after the strategic sale of part of our European shipping portfolio in 2023,and work undertaken to assess the materiality of our remaining portfolio from a financed emissions perspective,we have concluded that the remaining exposure as of year-end 2023 is not material enough to warrant settin

295、g a stand-alone target.This aligns with NZBA guidelines on sector inclusion for target setting.Due to ongoing data availability and quality challenges,we continue to assess our financed emissions for our real estate and agriculture sectors.We recognise that there is a significant amount of uncertain

296、ty and complexity related to the transition,and that progress in the real economy will depend heavily on external factors including the policy and regulatory landscape across markets,the speed of technological innovation and growth,and economic and geopolitical events.In addition,climate science and

297、 the availability and quality of climate data continue to evolve,and the net zero-aligned scenarios upon which we have based our approach will also update over time to keep pace with real economy developments.Emissions and broader customer data is also expected to improve,as well as approaches and s

298、tandards for greenhouse gas accounting and target setting.As a result of this,we expect to regularly refine and update our analysis as well as data collection and consolidation processes to accommodate new data sources and updated methodologies and scenarios,and intend to be transparent on any chang

299、es we make and why.As an example,our ESG review includes recalculated 2019 and 2020 financed emissions figures for the oil and gas,and power and utilities sectors.In addition,periodic updates to published net zero-aligned scenarios mean that it will be important that our net zero-aligned reference s

300、cenario choice,and by extension our target-setting approach,remain in step with the evolving real economy context and is informed by the latest science.In the following table,we set out our metrics and indicators and assess our progress against them.For further details of our approach to measuring f

301、inanced emissions,including scope,methodology,assumptions and limitations,see page 53.18HSBC Holdings plc Annual Report and Accounts 2023Strategic report|ESG overviewStrategic reportResponsible business cultureWe have a responsibility to help protect our customers,our communities and the integrity o

302、f the financial system.Employee matters We are building a responsible business culture that values difference,takes responsibility,seeks different perspectives and upholds good standards of conduct.There may be times when our colleagues need to speak up about behaviours in the workplace.In the first

303、 instance we encourage colleagues to speak to their line manager,and our annual Snapshot survey showed that 86%of colleagues have trust in their direct manager.HSBC Confidential is our whistleblowing channel,which allows colleagues past and present to raise concerns confidentially and,if preferred,a

304、nonymously(subject to local laws).Our Snapshot survey showed that 80%of colleagues feel able to speak up when they see behaviours they consider to be wrong.We promote an environment where our colleagues are treated with dignity and respect and we act where we find behaviours that fall short.Our incl

305、usion index measures our colleagues sense of belonging and psychological safety within the organisation,and in 2023 this increased to 78%.We aspire to be an organisation that is representative of the communities in which we serve.We have committed to achieving a 35%representation of women in senior

306、leadership roles(classified as those at band 3 and above in our global career band structure)by 2025.We remain on track,having achieved 34.1%in 2023.We aspire to achieve a 3.4%representation of Black heritage colleagues in senior leadership roles across the UK and US combined by 2025.We are on track

307、 to achieve this,having increased our representation to 3.0%this year.We continue to make progress but we know there is more to be done.To ensure we set representation goals that are locally relevant,we enable our employees to self-disclose ethnicity data.We have enabled 91%of our colleagues to disc

308、lose their ethnicity,with 62%currently choosing to do so,where this is legally permissible.All employees52%48%Senior leadership134%66%Holdings Board47%53%MaleMaleMaleFemaleFemaleFemaleThe table below outlines high-level diversity metrics.1 Senior leadership is classified as those at band 3 and above

309、 in our global career band structure.For further details of how we look after our people,including our diversity targets,how we encourage our employees to speak up,and our approach to employee conduct,see the Social section of the ESG review on page 75.Listening to our customersWe continue to listen

310、,learn and act on our customers feedback.We have implemented the net promoter system,enabling us to share customer feedback with our front-line teams and allowing them to respond directly to customers.We also have dedicated global forums to promote continuous improvement of our customers experience.

311、Social mattersWe invest in the long-term prosperity of the communities where we operate.We aim to provide people,especially those in marginalised and vulnerable communities,with the skills and knowledge needed to thrive through the transition to a sustainable future.For this reason,we focus our supp

312、ort on programmes that help build inclusion and resilience.We also support climate solutions and innovation,and contribute to disaster relief when needed.For examples of our programmes,see the Communities section of the ESG review on page 86.Human rights As set out in our Human Rights Statement,we r

313、ecognise the role of business in respecting human rights.Our approach is guided by the UN Guiding Principles on Business and Human Rights(UNGPs)and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.Our Human Rights Statement,and annual statements under the UKs Modern

314、Slavery Act,are available on further details of our approach,see the Human rights section of the ESG review on page 89.Anti-corruption and anti-briberyWe are required to comply with all applicable anti-bribery and corruption laws in every market and jurisdiction in which we operate while focusing on

315、 the spirit of relevant laws and regulations to demonstrate our commitment to ethical behaviours and conduct as part of our environmental,social and corporate governance.Environmental mattersFor details of our climate ambition and carbon emission metrics,see the ESG review on page 44.Training collea

316、gues and partners on digital accessibility With Digitise being one of our strategic pillars,we are committed to improving how our customers can access our online and mobile services.We review against the Web Content Accessibility Guidelines for our websites in 23 markets and mobile apps in 18 market

317、s,and engaged with more than 10,000 colleagues,partners and companies through our digital accessibility training and awareness programme in 2023.To share best practice externally,HSBC sponsored and hosted AbilityNets Techshare Pro at our head office in the UK.Our work on digital accessibility was re

318、cognised through 11 awards in 2023,including in Hong Kong,where we were the only financial services provider to be recognised for our core banking apps.Group non-financial and sustainability information statementThis section primarily covers Group non-financial and sustainability information as requ

319、ired by applicable regulations.Other related information can be found as follows:For further details of our key performance indicators,see page 1.For further details of our business model,see page 4.For further details of our principal risks and how they are managed,see pages 37 to 39.For further de

320、tails of our TCFD disclosures,including alignment with sections 414CA and 414CB of the Companies Act 2006,see pages 69 to 74.HSBC Holdings plc Annual Report and Accounts 202319ESG overviewThe Board is committed to effective engagement with all our stakeholders and seeks to understand their interests

321、 and the impacts on them when making decisions.Section 172(1)statementBoard decision making and engagement with stakeholders This section,from pages 20 to 23,forms our section 172(1)statement.It describes how the Directors have performed their duty to promote the success of the company,including how

322、 they have considered and engaged with stakeholders and,in particular,how they have taken account of the matters set out in section 172(1)(a)to(f)of the Companies Act 2006.The Board continued to focus on its engagement with our key stakeholders,acknowledging that this engagement is core to being a r

323、esponsible business and furthers the fulfilment of our strategy.In discharging their responsibilities,the Directors sought to understand,and have regard to,the interests and priorities of the Groups key stakeholders,including in relation to material decisions that were taken by the Board during the

324、course of the year.The following table includes instances where the Directors have had regard to section 172(1)factors(which are not mutually exclusive)when discussing certain matters in Board meetings and taking decisions where relevant.Some of these instances are explained in more detail in this s

325、ection 172(1)statement and in the report of the Directors.During 2023,the Board continued with an active stakeholder engagement programme,meeting numerous stakeholders in several international locations.For further details of how we engaged with our stakeholders,see pages 21 and 257.On pages 22 and

326、23,we describe how the Board exercises its Directors section 172(1)duty and takes into account the impact on relevant stakeholders when making principal decisions in order to support and deliver on the Groups strategy.Section 172(1)factorWhere section 172(1)factor featured in Board considerationsaLi

327、kely consequences of any decision in the long term Group strategy setting and monitoring Mergers and acquisitions activity Share capital activity dividend and buy-backbInterests of our employees Workforce engagement non-executive Director programme Directors workforce engagement activities Annual em

328、ployee Snapshot surveycThe need to foster our business relationships with suppliers,customers and others Annual statement under the UK Modern Slavery Act and human rights disclosure approvals Directors stakeholder engagement activities Regular Board reports from Directors and executivesdImpact of ou

329、r operations on the community and the environment Directors engagement with community initiatives Net zero transition plan Participation at ESG events such as COP28 and representation at the World Economic ForumeOur desire to maintain a reputation for high standards of business conduct The Financial

330、 Conduct Authoritys new Consumer Duty obligations Global mandatory training Regular engagement with global regulators including presentations by the Prudential Regulation Authority and the Financial Conduct Authority to the BoardfActing fairly between members of the company Annual General Meeting an

331、d Hong Kong Informal Shareholders Meeting Retail shareholder activities and investor policies approvals Directors engagement with top investors20HSBC Holdings plc Annual Report and Accounts 2023Strategic report|Board decision making and engagement with stakeholdersStrategic reportDirectors key engag

332、ements with stakeholders in 2023StakeholdersEngagementImpact and outcomesCustomersWe recognise that the greater our understanding of our customers needs,the better we can help support them to achieve their financial aims and succeed in our purpose and strategy.Engagement events with business custome

333、rs,including customers of HSBC Innovation Banking,to discuss challenges and opportunities in key markets Meetings with business customers to discuss plans regarding the transition to net zero Board reporting on retail customer surveys including net promoter scores Visits to branches in the UK,Hong Kong and India to better understand customers changing needs The Boards continued engagement with cus