匯豐銀行HSBC Holdings plc (HSBC) 2022年年度報告「NYSE」.pdf

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1、HSBC Holdings plcAnnual Report and Accounts 2022Our 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 execution.Opening up a world of opportunityContentsStrategic report2 Highlights4 Who we ar

2、e6 Group Chairmans statement 8 Group Chief Executives review11 Our strategy14 ESG overview20 Board decision making and engagement with stakeholders(Section 172(1)statement)24 Remuneration26 Financial overview31 Global businesses38 Risk overview42 Long-term viability and going concern statementEnviro

3、nmental,social and governance(ESG)review44 Our approach to ESG46 Environmental73 Social85 GovernanceFinancial review98 Financial summary109 Global businesses and geographical regions128 Reconciliation of alternative performance measuresRisk review132 Our approach to risk135 Top and emerging risks142

4、 Areas of special interest142 Our material banking risksCorporate governance report240 Biographies of Directors and senior management259 Board committees276 Directors remuneration reportFinancial statements313 Independent auditors report324 Financial statements335 Notes on the financial statementsAd

5、ditional information418 Shareholder information427 AbbreviationsHSBC Holdings plcAnnual Report and Accounts 2022Cover image:Opening up a world of opportunityOur cover features Stitt,one of HSBCs two bronze lions.Touching the lions paw was said to bring good luck,and that tradition continues today.Th

6、e lions,Stephen and Stitt,designed by British sculptor Henry Poole,were commissioned to celebrate the opening of the newly-rebuilt HSBC building on the Bund in Shanghai in 1923.Stephen and Stitt represent the strength and endurance that is part of our heritage.Loyal and proud,they stand guard outsid

7、e our offices in Hong Kong,London and Shanghai,and symbolise good fortune and stability.Our approach to ESG reportingWe embed our ESG reporting and Task Force on Climate-related Financial Disclosures(TCFD)within our Annual Report and Accounts.Our TCFD disclosures are highlighted with the following s

8、ymbol:TCFD This Strategic Report was approved by the Board on 21 February 2023.Mark E Tucker Group ChairmanA reminder The currency we report in is US dollars.Adjusted measures We supplement our IFRSs figures with non-IFRSs measures used by management internally that constitute alternative performanc

9、e 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 highlighted with the following symbol:Further explanation may be found on pag

10、e 29.None of the websites referred to in this Annual Report and Accounts 2022 for the year ended 31 December 2022(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 an

11、d 11.HSBC Holdings plc Annual Report and Accounts 2022Strategic reportPerformance in 2022 Delivery against our financial targetsIn assessing the Groups financial performance,we use a range of financial measures that focus on the delivery of sustainable returns for our shareholders and maintaining ou

12、r financial strength.For our financial targets,we define medium term as three to four years and long term as five to six years,commencing 1 January 2020.Further explanation of performance against Group financial targets can be found on page 26.Return on average tangible equity9.9%Target:12%from 2023

13、 onwards.(2021:8.3%)Adjusted operating expenses$30.5bnTarget:2022 adjusted operating expenses broadly stable compared with 2021.(2021:$30.1bn)Gross risk-weighted asset reduction$128bnSince the start of the programme.Target:$110bn by the end of 2022.Common equity tier 1 capital ratio14.2%Target:14%,m

14、anaging in the range of 14%to 14.5%in the medium term;and manage the range down further long term.(2021:15.8%)Dividend per share$0.322022 payout ratio:44%Updated target:dividend payout ratio of 50%for 2023 and 2024,excluding material significant items.Previous target:sustainable cash dividends with

15、a payout ratio of 40%to 55%from 2022 onwards.Strategic performance indicators Our strategy supports our ambition of being the preferred international financial partner for our clients.We are committed to building a business for the long term,developing relationships that last.Read more on our strate

16、gic progress on page 11.Read more on how we set and define our environmental,social and governance metrics on page 16.Read more on our financed emissions scope,methodology and terminology on page 50,and our definition of sustainable finance and investment on page 57.Capital allocation to Asia 47%Tan

17、gible equity as a percentage of the Groups(excluding associates,holding companies,and consolidation adjustments).(2021:42%)Net new invested assets$80bnGenerated in 2022,of which$59bn were in Asia.Gross cost saves$5.6bnDelivered from our cost-reduction programme,with an expected additional$1bn in 202

18、3,and a total programme cost of$6.5bn.Gender diversity33.3%Women in senior leadership roles.(2021:31.7%)Sustainable finance and investment$210.7bn Cumulative total provided and facilitated since January 2020.(2021:$126.7bn)Net zero in our own operations58.5%Cumulative reduction in absolute greenhous

19、e gas emissions from 2019 baseline.(2021:50.3%)Financed emissions targets 8 sectorsNumber of sectors where we have set on-balance sheet financed emissions targets.HSBC is one of the worlds leading international banks.We have a clear strategy to deliver revenue and profit growth,enhance customer serv

20、ice and improve returns to shareholders.HSBC Holdings plc Annual Report and Accounts 20221HighlightsFinancial performance reflected net interest income growth and cost discipline,and we continued to make progress against our four strategic pillars.Financial performance(vs 2021)Reported profit before

21、 tax fellby$1.4bn to$17.5bn,including animpairment on the planned sale of our retailbanking operations in France of$2.4bn.Adjusted profit before tax increasedby$3.4bn to$24.0bn.Reported profitafter tax increased by$2.0bnto$16.7bn,including a$2.2bn credit arisingfrom the recognition of a deferred tax

22、 asset.Reported revenue increased by 4%to$51.7bn,driven by strong growth in netinterest income,with increases in all of ourglobal businesses,and higher revenue fromGlobal Foreign Exchange in Global Bankingand Markets(GBM).This was in partoffset by a$3.1bn adverse impact of foreigncurrency translatio

23、n differences,theimpairment on the planned sale of our retailbanking operations in France and adversemovements in market impacts in insurancemanufacturing in Wealth and PersonalBanking(WPB).In addition,fee incomefell in both WPB and GBM.Adjustedrevenue increased by 18%to$55.3bn.Net interest margin(N

24、IM)of1.48%increased by 28basis points(bps),reflecting interest rate rises.Reported expected credit losses andother credit impairment charges(ECL)were$3.6bn,including allowances toreflect increased economic uncertainty,inflation,rising interest rates and supply chainrisks,as well as the ongoing devel

25、opmentsin mainland Chinas commercial real estatesector.These factors were in part offsetby the release of most of our remainingCovid-19-related reserves.This compared with releases of$0.9bn in 2021.ECL chargeswere 36bps of average gross loans andadvances to customers.Reported operating expenses decr

26、easedby$1.3bn or 4%to$33.3bn,reflectingthe favourable impact of foreign currencytranslation differences of$2.2bn and ongoingcost discipline,which were in part offset by higher restructuring and other related costs,increased investment in technology andinflation.Adjusted operating expensesincreased b

27、y$0.4bn or 1.2%to$30.5bn,including a$0.2bn adverseimpact from retranslating the 2022 resultsof hyperinflationary economies atconstant currency.Customer lending balances fell by$121bn on a reported basis.On anadjusted basis,lending balances fell by$66bn,reflecting an$81bn reclassificationof loans,pri

28、marily relating to the plannedsale of our retail banking operations inFrance and the planned sale of our bankingbusiness in Canada,to assets held for sale.Growth in mortgage balances in the UK andHong Kong mitigated a reduction in termlending in Commercial Banking(CMB)in Hong Kong.Common equity tier

29、 1(CET1)capitalratio of 14.2%reduced by 1.6percentage points,primarily driven by adecrease of a 0.8 percentage point fromnew regulatory requirements,a reductionof a 0.7 percentage point from the fall in thefair value through other comprehensiveincome(FVOCI)and a 0.3 percentagepoint fall from the imp

30、airment followingthe reclassification of our retail bankingoperations in France to held for sale.Capitalgeneration was mostly offset by an increasein risk-weighted assets(RWAs)net offoreign exchange translation movements.The Board has approved a second interimdividend of$0.23 per share,making atotal

31、 for 2022 of$0.32 per share.Outlook The impact of our growth andtransformation programmes,as wellas higher global interest rates,give usconfidence in achieving our return onaverage tangible equity(RoTE)targetof at least 12%for 2023 onwards.Our revenue outlook remains positive.Based on the current ma

32、rket consensusfor global central bank rates,we expectnet interest income of at least$36bn in2023(on an IFRS 4 basis and retranslated forforeign exchange movements).We intend toupdate our net interest income guidance at orbefore our first quarter results to incorporatethe expected impact of IFRS 17 I

33、nsuranceContracts.While we continue to use a range of 30bpsto 40bps of average loans for planning ourECL charge over the medium to long term,given current macroeconomic headwinds,we expect ECL charges to be around40bps in 2023(including lending balancestransferred to held for sale).We note recentfav

34、ourable policy developments in mainland Chinas commercial real estate sector and continue to monitor events closely.We retain our focus on cost discipline and will target 2023 adjusted cost growth ofapproximately 3%on an IFRS 4 basis.Thisincludes up to$300m of severance costs in 2023,which we expect

35、 to generate further efficiencies into 2024.There may also be an incremental adverse impact from retranslatingthe 2022 results of hyperinflationary economies at constant currency.We expect to manage the CET1 ratiowithin our medium-term target rangeof 14%to 14.5%.We intend to continue tomanage capita

36、l efficiently,returning excesscapital to shareholders where appropriate.Given our current returns trajectory,weare establishing a dividend payout ratioof 50%for 2023 and 2024,excludingmaterial significant items,with consideration of buy-backs brought forward to our firstquarter results in May 2023,s

37、ubject to appropriate capital levels.We also intend to revert to paying quarterly dividends from the first quarter of 2023.Subject to the completion of the sale of ourbanking business in Canada,the Boardsintention is to consider the paymentof a special dividend of$0.21 per shareas a priority use of

38、the proceedsgenerated by completion of thetransaction.A decision in relation to anypotential dividend would be made followingthe completion of the transaction,currentlyexpected in late 2023,with paymentfollowing in early 2024.Further details inrelation to record date and other relevantinformation wi

39、ll be published at that time.Any remaining additional surplus capitalis expected to be allocated towardsopportunities for organic growth andinvestment alongside potential sharebuy-backs,which would be in addition toany existing share buy-back programme.2HSBC Holdings plc Annual Report and Accounts 2

40、022Strategic reportStrategic reportESG highlightsTransition to net zero We have set interim 2030 targets foron-balance sheet financed emissionsfor eight sectors.These include sixsectors for which we have reported2019 and 2020 emissions:oil and gas;power and utilities;cement;iron,steel andaluminium;a

41、viation;and automotive.Wehave also set targets for thermal coal powerand thermal coal mining.We recognise thatmethodologies and data for measuringemissions will continue to evolve.We published an updated energy policy,which is an important mechanism to helpphase down the financed emissions ofour ene

42、rgy portfolio in line with a 1.5Cpathway.We also updated our thermalcoal phase-out policy with new targetsto reduce absolute on-balance sheetfinanced emissions from thermalcoal mining and coal-fired power,and extended the policy to excludefinance for the specific purposes ofnew metallurgical coal mi

43、nes.Since 2020,we have provided andfacilitated$210.7bn of sustainablefinance and investment,an increaseof$84.2bn in the past year.Within our own operations,we have madea 58.5%cumulative reduction in ourabsolute greenhouse gas emissionsfrom a 2019 baseline.We also publishedsupply chain emissions as p

44、art of ourscope 3 disclosures for the first time.Build inclusion and resilience Having surpassed our 2020 target to reach30%women in senior leadership roles,wehave made progress towards our goalto achieve 35%by 2025,with 33.3%achieved in 2022.We continue to makeprogress towards the target we set in

45、2020to at least double the number of Black seniorleaders within five years.We have stepped up efforts to supportcustomers in the face of inflation andthe rising cost of living,particularly in theUK.We have focused on early intervention,using data analysis to identify potentiallyimpacted customers in

46、 our WPB and CMBbusinesses,signpost to relevant resources,and provide tailored support.We are working to make the bankingexperience more accessible in both physicaland digital spaces.We are committed toensuring that our digital channels areusable by everyone,regardless ofability.The introduction of

47、features suchas safe spaces,quiet hours and talkingATMs are helping to make our physicalspaces more accessible as well.Act responsibly We conducted a review of our salienthuman rights issues,includingstakeholder consultation with non-governmental organisations(NGOs)and potentially affected groups.We

48、 aim to be a top-three bank for customersatisfaction.While our net promoter scoreshave improved in many of our key markets,we have more work to do to improve ourposition relative to peers,as some haveimproved their performance more quickly.We have launched a sustainableprocurement mandatory procedur

49、e forour employees and anew supplier codeof conductto help ensure our sustainabilityobjectives are embedded in the way weoperate and do business with suppliers.Strategic progress We have made progress in implementingour transformation programme,establishing a platform for futuregrowth.During 2022,we

50、 took further actions toreshape the Group.In November 2022,we announced the planned sale ofour banking business in Canada,whichis expected to be completed in late2023,subject to regulatory andgovernmental approvals.In addition,we are in the process of disposing ofour retail banking operations in Fra

51、nce,aswell as exiting our businesses in Greeceand Russia,subject to regulatory andgovernmental approvals.As part of our efforts to improve thereturns profile of the Group,we surpassedour gross RWA reduction target,generating cumulative gross RWAreductions of$128bn since the startof the programme in

52、2020.Our cost-reduction programme continuedto make progress,with a further$2.3bnof gross cost savings recognised in 2022.Since the start of the programme in2020,we have realised gross savingsof$5.6bn,with cost to achieve spendof$6.5bn.While our three-year cost toachieve programme has now concluded,t

53、he Group-wide focus on cost disciplineremains resolute.We have continued to invest and growin the areas in which we are strongest.In our Wealth business in Asia,weattracted net new invested assetsof$59bn in 2022.HSBC Holdings plc Annual Report and Accounts 20223HighlightsWho we areOur valuesOur valu

54、es 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 responsibilityHolding ourselves accountable and taking the long viewWe get it doneMoving at pace and making

55、 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 our ambition of being the preferred international financial partner for our clients,centr

56、ed around four key areas.Focus on our strengths In each of our global businesses,we continue to focus on areas where we are strongest and have opportunities to grow.Digitise at scaleWe continue to invest in our technology and operational capabilities to drive operating productivity across businesses

57、 and geographies and to offer better client experience.Energise for growthWe are building a dynamic and inclusive culture,and empowering our people by helping them develop future skills.Transition to net zeroWe are helping the transition to a net zero economy by transforming ourselves,and supporting

58、 our customers to make their own transitions.For further details on our strategy,see pages 11 to 13.Our global reachOur global businesses serve around 39 million customers worldwide through a network that covers 62 countries and territories.Our customers range from individual savers and investors to

59、 some of the worlds biggest companies,governments and international organisations.We aim to connect them to opportunities and help them to achieve their ambitions.For further details of our customers and approach to geographical information,see page 108.1 Our customer numbers exclude those acquired

60、through our purchase of L&T Investment Management.Assets of$3.0tnApproximately39mCustomers bank with us1Operations in62Countries and territoriesWe employ approximately219,000Full-time equivalent staff4HSBC Holdings plc Annual Report and Accounts 2022Strategic reportStrategic report44%29%27%Wealth an

61、d Personal BankingCommercial BankingGlobal Banking and MarketsCustomersEmployeesInvestorsCommunitiesRegulators and governmentsSuppliersOur global businessesWealth and Personal Banking(WPB)We help millions of our customers look after their day-to-day finances and manage,protect and grow their wealth.

62、Adjusted 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 comprehensive range of financial services and products to corporates,governments a

63、nd 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 who work for us,bank with us,own us,regulate us,and live in the societies we ser

64、ve 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 customers and shareholders.Our size and global reach mean our actions can have

65、 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 Calculation is based on adjusted revenue of our global businesses excluding Corporate Ce

66、ntre,which is also excluded from the total adjusted revenue number.Corporate Centre had negative adjusted revenue of$596m in 2022.For further details of how we are engaging with our stakeholders,see page 15.Our section 172 statement,detailing our Directors responsibility to stakeholders,can be found

67、 on page 20.For further details,see page 31.For further details,see page 33.For further details,see page 35.On pages 31 to 37 we provide an overview of our performance in 2022 for each of our global businesses,as well as our Corporate Centre.In each of our global businesses,we focus on delivering gr

68、owth in areas where we have distinctive capabilities and have significant opportunities.Each of the chief 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 20225Who we ar

69、eGroup Chairmans statementAs we signalled at our interim results,we are committed to ensuring our shareholders share the benefits of our improved performance.The Board approved a second interim dividend for 2022 of$0.23 per share,bringing the full year dividend for 2022 to$0.32 per share.We are esta

70、blishing a dividend payout ratio of 50%of reported earnings per share for 2023 and 2024,excluding material significant items,and we aim to restore the dividend to pre-Covid-19 levels as soon as possible.We also intend to return to paying quarterly dividends from the start of 2023.Subject to completi

71、on of the planned sale of our banking business in Canada,the Boards intention is to consider the payment of a special dividend of$0.21 per share as a priority use of the proceeds generated.A decision in relation to any potential dividend would be made following the completion of the transaction,curr

72、ently expected in late 2023,with payment following in early 2024.Any remaining additional surplus capital is expected to be allocated towards opportunities for organic growth and investment alongside share buy-backs,which would be in addition to any existing share buy-back programme.Board operations

73、In 2022,the Board met in person in London,Hong Kong,New York and Riyadh on each occasion also undertaking a wide range of engagements with clients,colleagues,government officials and regulators.The importance of engaging with our teams was also underlined by the appointment of Jos(Pepe)Meade as Boar

74、d member with specific responsibility for employee liaison.At the same time as holding some in-person meetings,the continued use of virtual meetings enabled us to retain the benefits of greater efficiency and reduced costs.At the 2022 Annual General Meeting,Irene Lee and Pauline van der Meer Mohr st

75、epped down from the Board.I am enormously grateful to them for their important and valuable contributions to the Board,the committees and the subsidiary entities on which they have served.Irene remains an independent non-executive Director of The Hongkong and Shanghai Banking Corporation Limited and

76、 independent non-executive chair of Hang Seng Bank Limited.Geraldine Buckingham joined the Board as an independent non-executive Director on 1 May.Following Ewen Stevensons departure,Georges Elhedery became Group Chief Financial Officer and joined the Board on 1 January 2023.On behalf of the Board,I

77、 would like to again thank Ewen for all that he has done for the bank.His leadership,financial expertise and operational rigour have been invaluable to HSBC,and he leaves with our very best wishes.At the start of 2022,the ongoing impact of Covid-19 was the most dominant factor within the external en

78、vironment.While further outbreaks in Hong Kong and mainland China significantly impacted economic growth,the Russia-Ukraine war and rising inflation and interest rates had an even greater impact on the global economy in 2022.They are also likely to continue to have a greater economic impact than the

79、 pandemic in 2023,as we are already seeing with a cost of living crisis affecting many of our customers and colleagues.Strong financial performance and higher capital distributionsWe supported our customers through the challenges that they faced at the same time as executing our strategic plan.The f

80、irst phase of our transformation is now complete.The work that we have done has enabled us to emerge from the pandemic a stronger bank,better aligned to the international needs of our customers.Mark E TuckerGroup ChairmanThe global economy remains volatile,but our strategy is delivering improved ret

81、urns for shareholders and HSBC is well placed to compete as the economy recovers.The reshaping of our portfolio continued with the announcement of the planned sale of our banking business in Canada.We continued to develop our Wealth capabilities,especially in Asia,and this strategy gained traction i

82、n 2022.Our increased investment in technology has improved the customer experience and made our processes more efficient.Meanwhile,we continued to support our clients to transition to net zero,and also took further important steps towards our ambition of aligning our financed emissions to net zero b

83、y 2050.Given the urgency of todays global energy crisis,it is now even more important that we continue to actively engage our clients on how they intend to prepare their businesses for a low-carbon future.In 2022,reported profit before tax was$17.5bn,a decrease of$1.4bn compared with 2021 due to the

84、$2.4bn impairment on the planned sale of our French retail banking operations.Adjusted profit before tax was$24.0bn,an increase of$3.4bn on last year.All of our businesses grew profits in 2022,and we maintained our strong capital,funding and liquidity positions.6HSBC Holdings plc Annual Report and A

85、ccounts 2022Strategic reportStrategic reportto individuals and companies of all sizes whose financial ambitions span multiple countries and regions.Very few,if any,other banks can rival our ability to connect capital,ideas and people through a global network that facilitates the international access

86、 and collaboration required to succeed in todays world.Our performance in 2022 demonstrates that our current strategy is working and improving returns.We are also confident that it will deliver good returns for our shareholders over the coming years.The Board and management team are fully focused on

87、 delivering it.An uneven macroeconomic outlook We will need to maintain this focus against an uneven macroeconomic outlook.The pandemic,high inflation and interest rates,and the Russia-Ukraine war all have implications for the global economy,including volatility in markets,supply chain disruption,pr

88、essure on small and medium-sized business and squeezes on the cost of living.Different economies also now face different challenges and have different opportunities in 2023.Chinas reopening and package of measures to stabilise the property market should provide a significant boost for its economy an

89、d the global economy,albeit with some near-term volatility.Our economists forecast Chinas GDP will grow 5%in 2023.The reopening of the border means that Hong Kong,and the entire Greater Bay Area,are likely to be major beneficiaries,and I expect to see a strong recovery.More broadly,Asia as a whole h

90、as proven resilient and there is the prospect of a strong rebound later in the year.Virtually all economies in the region have now recovered the output losses incurred during the pandemic and are above 2019 levels.The Middle East economies enjoyed a strong 2022,and we expect this momentum to continu

91、e in 2023 on the back of the important reforms underway to transform,diversify and grow the regions economies.We see strong and growing demand to connect clients in the Middle East with Asias economies,and vice versa.In contrast,Europe,including the UK,face challenges from higher energy prices fuell

92、ing inflation and necessitating higher interest rates,driven in part by the Russia-Ukraine war.All of these factors are contributing to a cost of living crisis and more economic uncertainty.We expect that any recession,if there is one at all,will be relatively shallow.The US economy is proving resil

93、ient and a hard landing appears unlikely.Some economists believe that inflation may now have peaked in the US,and there is consensus that the US will avoid recession.I expect the US to make an important contribution to global GDP growth in 2023.Overall,I am optimistic about the global economy in the

94、 second half of 2023,but there is still a high level of uncertainty due to the Russia-Ukraine war and recessionary fears may yet dominate much of the year ahead.Navigating geopolitics remains challengingThe geopolitical environment remains challenging for our clients to navigate.There is sadly no en

95、d in sight to the Russia-Ukraine war.However,the Wests relationship with China appears to be relatively stable.The renewed,constructive dialogue between President Xi and President Biden at the G20 in November was clearly important.While further US sanctions are expected this year,capital flows betwe

96、en China and the West increased during the pandemic,even with reciprocal tariffs in place.China is also taking an active approach to diplomatic engagement with European nations,including the UK.Chinas reopening will also allow for the resumption of face-to-face visits,which will support greater dial

97、ogue between China and important partners such as Germany,France and the UK.We also naturally continue to engage with governments around the world.One of the key trends of the past three years has been supply chain disruption,due largely to a combination of geopolitics,pandemic and war-related facto

98、rs.Businesses are seeking to build greater resilience into their supply chains,reduce their dependence on sole suppliers or regions,and take the opportunity to digitise.I expect these trends all to continue throughout 2023.HSBCs global network means we are well placed to adapt to regional diversific

99、ation that takes place within supply chains.Thank you to my colleaguesFinally,my colleagues have once again shown great dedication,energy and care in serving our customers and working together over the past year.They have exemplified our purpose of opening up a world of opportunity and our core valu

100、es.While we want to achieve even more in 2023 and beyond,I am very proud of what they achieved in 2022 and I am extremely grateful to each of them.Mark E TuckerGroup Chairman21 February 2023”Given the urgency of todays global energy crisis,it is now even more important that we continue to actively e

101、ngage our clients on how they intend to prepare their businesses for a low-carbon future.”We also recently announced some changes to the Board.Kalpana Morparia will join the Board as an independent non-executive Director on 1 March.Jack Tai will retire from the Board at the conclusion of the 2023 AG

102、M,and will be succeeded as Chair of the Group Risk Committee by Jamie Forese.Jack has made a significant and important contribution during his time on the Board,particularly in the strengthening of risk and conduct governance and oversight through a period of major change.We wish him very well in hi

103、s future endeavours.Noel and I were delighted to meet face-to-face with our loyal Hong Kong shareholders at our Informal Shareholders Meeting in August.We have always greatly valued their feedback and engagement,and this meeting was as well attended as ever.We were pleased to discuss how our busines

104、s has performed,our continued support of Hong Kong,and our commitment to growing shareholder value.We look forward to continuing these discussions in person in 2023.Our strategy is working There were reports over the course of last year about ideas for alternative structures for HSBC.The Board has b

105、een fully engaged in examining these alternatives in depth,with the benefit of independent third-party financial and legal advice.It has been,and remains,our judgement that alternative structural options would not deliver increased value for shareholders.Rather,they would have a material negative im

106、pact on value.For 157 years,we have followed trade and investment flows to support our customers as they fulfil their financial ambitions.We have used our experience,expertise and relationships to help our customers to navigate the world.Today,we remain steadfastly focused on our core purpose of ope

107、ning up a world of opportunity.Our model is particularly relevant HSBC Holdings plc Annual Report and Accounts 20227Group Chairmans statementGroup Chief Executives reviewWe have completed the first phase of our transformation.Our international connectivity is now underpinned by good,broad-based prof

108、it generation around the world.Our focus is now on continuing to grow our core business,while also capitalising on the new sources of value creation that we have built.When we embarked on our transformation programme in February 2020,our aim was to address the fundamental issues that had contributed

109、 to a decade of low returns.It was clear to me that too much of our capital was being used inefficiently,too many of our businesses were loss-making and sub-scale,and too many of our clients were low returning and purely domestic in nature.Over the last three years,while responding to the challenges

110、 of the pandemic,we have structurally repositioned our businesses and operating model to achieve higher returns.The progress that we have made over the past three years means that HSBC is well positioned to deliver higher returns and has a good platform for future growth.Noel QuinnGroup Chief Execut

111、ive The most significant changes to our portfolio have been the exit and wind-down of non-strategic assets and clients in the Americas and Europe,and the investment in technology and in organic and inorganic growth in Asia,especially in Wealth and Personal Banking.We have completed the sale of our U

112、S mass market retail business,and announced the planned exit of our French retail banking operations and the planned sale of our banking business in Canada.We have also announced exits in other smaller businesses,including Greece and Russia.A key factor in assessing the strategic value of our busine

113、sses has been whether they capitalise on the distinct advantages that we have,especially those derived from our global network.Our work to increase capital efficiency resulted in cumulative risk-weighted asset savings of$128bn by the end of 2022,in excess of our original target as we accelerated res

114、tructuring in the US and Europe.This enabled us to reallocate capital towards Asia and the Middle East.Finally,we have transformed our cost base and restored tight cost discipline across the organisation.Our cost to achieve programme concluded at the end of 2022,but it enabled us to take multiple la

115、yers of inefficiency out of the business and embed changes that we expect to provide flow-through benefits for years to come.Building a good platform for future growthAt the same time,we have invested in new sources of value creation that provide a good platform for future growth.Developing our capa

116、bilities in Wealth,particularly in Asia,has been a strategic priority as we have sought to diversify our revenues.We have done this organically through the build-out of our Pinnacle business in mainland China,and inorganically through the purchases of AXA Singapore and L&T Investment Management in I

117、ndia,by increasing our stake to 90%in HSBC Qianhai Securities,and by taking full ownership of our HSBC Life China insurance business.The traction that we are gaining in Wealth is reflected by the$80bn of net new invested assets that we attracted in 2022,$59bn of which were in Asia.Return on average

118、tangible equity 9.9%(2021:8.3%)Adjusted revenue$55.3bn(2021:$47.0bn)8HSBC Holdings plc Annual Report and Accounts 2022Strategic report Strategic reportOur core purpose is opening up a world of opportunity and that,in essence,is what we do by helping our personal and corporate customers to move money

119、 between countries and do business across borders.This is still the best way for us to create value,and what makes us a world leading bank for international and mid-market customers.We are the number one trade finance bank,and trade revenue was up 13%in 2022,surpassing the good level of growth in th

120、e previous year.Trade also increased in all regions.We are also one of the leading global foreign exchange houses and a leading payments company globally,with over$600tn of payments processed in 2022.Our global connectivity has made international our fastest-growing revenue segment in Wealth and Per

121、sonal Banking.Products like Global Money and our Wealth platforms are specifically designed to meet the international needs of our retail and wealth customers.These customers also provide around double the average revenue of domestic-only customers.The difference compared with three years ago is tha

122、t our international connectivity is now underpinned by good broad-based profit generation around the world.Already the leading bank in Hong Kong,we gained market share last year in key products including customer deposits,insurance and trade finance.We are also the leading foreign bank in mainland C

123、hina by revenue and are pleased to have received seven main licence approvals since 2020.Our business in India delivered$0.9bn of profit before tax last year and facilitated the equivalent of around 9%of Indias exports.In the Middle East,we delivered$1.8bn of profits and were the number one bank in

124、capital markets league tables.HSBC UK delivered$5bn of profits and was the number one bank for trade finance,while our non-ring-fenced bank in Europe delivered$2.1bn of profits and around 35%of its client business was booked outside the region.Our US business has now had nine consecutive quarters of

125、 profitability after its turnaround,while our business in Mexico delivered a return on tangible equity of 18%.The cost savings that we have made have been reinvested in technology,which has in turn enabled us to change the way we operate as a business.Technology spending was 19%higher in 2022 than i

126、n 2019.Much of this investment has been used to rebuild and upgrade platforms,which we have then rolled out globally.Our upgraded mobile banking app is available in 24 markets and has around 13 million active users,while our upgraded digital trade finance platform has been rolled out in the UK and H

127、ong Kong,ensuring that market-leading businesses are well positioned for the next 10 years.In 2022,we launched HSBC Orion,our new proprietary tokenisation platform using blockchain technology for bond issuances.Were also partnering with fintechs around the world to use their capabilities in our prod

128、ucts.Finally,we are investing in greater automation,which we expect to reap the benefits from for years to come.Empowering our people has underpinned everything that we have achieved over the past three years and it will underpin the next phase of our strategy too.Reducing management layers has help

129、ed to increase our speed and agility.In our last staff survey,the number of colleagues who report that work processes allow them to work efficiently was 6 percentage points above the sector benchmark.Confidence within the organisation has also increased.77%of colleagues told us they are confident ab

130、out our future,which is 3 percentage points up on 2021.We have continued to make steady progress against our medium-term targets on gender and ethnicity representation,while the number of hours that colleagues spent”The difference compared with three years ago is that our international connectivity

131、is now underpinned by good broad-based profit generation around the world.”learning about digital and data,and sustainability also increased by 13%last year,underlining the importance of these critical future skills.The transition to net zero will offer increasingly significant commercial opportunit

132、ies in the future.We have continued to make good progress towards our ambition of providing and facilitating$750bn to$1tn of sustainable financing and investment by 2030.At the end of 2022,the cumulative total for sustainable financing and investment since 2020 had reached more than$210bn.We publish

133、ed an updated energy policy,which commits us to no longer provide new finance or advisory services for the specific purpose of projects pertaining to new oil and gas fields and related infrastructure whose primary use is in conjunction with new fields.As per our policy,we will continue to provide fi

134、nance to maintain supplies of oil and gas in line with declining current and future global demand,while accelerating our activities in support of clean energy.We have also set interim 2030 targets for on-balance sheet financed emissions for eight sectors.These include six sectors for which we have r

135、eported 2019 and 2020 emissions.We recognise that methodologies and data for measuring emissions will continue to evolve,and our own disclosures will therefore continue to develop as a result.In 2023,we will publish our first bank-wide climate transition plan.Strong overall financial performance in

136、2022The progress that we have made transforming HSBC and investing in growth has helped to drive an improved financial performance in 2022.A strong net interest income performance reflected higher global interest rates,but there was also good underlying growth across the business in key areas,partic

137、ularly those linked to our international network.Overall,the Group delivered$17.5bn of reported profit before tax,which was$1.4bn lower than in 2021.This was due to a net expected credit loss charge of$3.6bn compared with a net release of$0.9bn last year,as well as the impairment of$2.4bn relating t

138、o the planned sale of our retail banking operations in France.Adjusted profit before tax was$24bn,up$3.4bn.Adjusted revenue was 18%higher than the same period last year,as net interest income grew strongly in all of our global businesses.There was also a strong performance in Global Foreign Exchange

139、.Our reported return on tangible equity for 2022 was 9.9%.Excluding significant items,we delivered a return on tangible equity of 11.6%.HSBC Holdings plc Annual Report and Accounts 20229Group Chief Executives reviewThere was a good performance across our global businesses.In Commercial Banking,adjus

140、ted profit before tax was up by 24%to$7.7bn,driven by revenue increases across all products and in all regions,most notably Asia and the UK.Within this,Global Payments Solutions revenue grew by 104%on the back of higher interest rates,while trade revenue was up 14%with growth in all regions.Global B

141、anking and Markets delivered adjusted profit before tax of$5.4bn,up 8%compared with 2021.Global Payments Solutions was again the main driver,with 119%growth in net interest income from higher interest rates,and a strong performance in Global Foreign Exchange.In Wealth and Personal Banking,adjusted p

142、rofit before tax of$8.5bn was 27%higher than 2021.Net interest income growth drove a good performance in Personal Banking,while there was also balance sheet growth in the UK,Asia outside Hong Kong,and Mexico.We restricted adjusted cost growth to 1%in 2022 as a result of the significant cost-saving a

143、ctions that we have taken.This represents a good outcome given the high inflation environment.After good capital generation in the fourth quarter,our CET1 ratio at the end of 2022 was 14.2%and back within our target range of 14%to 14.5%.We are able to pay a second interim dividend of$0.23 per share,

144、bringing the total 2022 dividend to$0.32 per share.Improved returns and substantial distribution capacityWe are firmly on track to achieve our target of a return on tangible equity of at least 12%from 2023 onwards.We have built up a good level of expected credit loss provisions,and we also expect th

145、e headwinds associated with macroeconomic uncertainty and the ongoing challenges within the China commercial real estate sector to subside,enabling expected credit losses to start to normalise.There will be no easing off at all on costs.Our cost to achieve programme has now ended,but we will continu

146、e to seek and find opportunities to create efficiencies that will deliver sustainable cost savings in future years.We are now considering up to$300m of additional costs for severance in 2023.These costs will need to be reported in our costs line.Taking this into account,we will aim for approximately

147、 3%cost growth in 2023.Tight cost discipline will remain a priority for the whole Group.As a result of the improving quality of our returns,we are establishing a dividend payout ratio of 50%of reported earnings per share for 2023 and 2024,excluding material significant items.We will aim to restore t

148、he dividend to pre-Covid-19 levels as soon as possible.We also intend to revert to paying quarterly dividends from the start of 2023.Given the capital generation at the end of 2022,we will bring forward the consideration of buy-backs to the announcement of our results for the first quarter of 2023.F

149、inally,subject to the completion of the sale of our banking business in Canada,I am pleased that the Board will consider payment of a special dividend of$0.21 per share in early 2024 as a priority use of the surplus capital generated by the transaction.We understand the importance of dividends to ou

150、r shareholders and expect them to benefit from improved capital distributions ahead.My colleagues are getting it doneI would like to end by thanking my colleagues around the world.Over the last three years,they have managed a period of substantial change,embraced the opportunities that our transform

151、ation has presented and gone the extra mile to support our customers all while living through a global pandemic.More recently,there have also been the Russia-Ukraine war,the real-life financial strains caused by high inflation and the devastating earthquakes in Trkiye for them to deal with.We have o

152、nly made the progress that we have because of their efforts.They are exemplifying our value of getting it done,and I am proud to lead them.Overall,2022 was another good year for HSBC.We completed the first phase of our transformation and our international connectivity is now underpinned by good,broa

153、d-based profit generation around the world.This contributed to a strong overall financial performance.We are on track to deliver higher returns in 2023 and have built a platform for further value creation.With the delivery of higher returns,we will have increased distribution capacity,and we will al

154、so consider a special dividend once the sale of HSBC Canada is completed.Noel QuinnGroup Chief Executive21 February 2023In 2022,we continued to build new sources of value creation.We brought in$80bn of net new invested assets in Wealth.We provided and facilitated cumulatively$210.7bn of sustainable

155、finance and investment since January 2020.Future growth levers10HSBC Holdings plc Annual Report and Accounts 2022Strategic report|Group Chief Executives reviewStrategic reportOur strategyWe are implementing our strategy across the four strategic pillars aligned to our purpose,values and ambition.Tra

156、nsformation journeyWe have made progress in our transformation in six key areas,as we start to improve financial performance and build a strong foundation for future growth.Firstly,we have retained a market leading position in international connectivity.We are the number one trade finance bank and n

157、umber three bank in foreign exchange globally,based on peer analysis undertaken by Coalition Greenwich.Across our global businesses,international connectivity is core to who we serve,with approximately 45%of our wholesale client business coming from cross-border relationships and approximately 6 mil

158、lion international customers banking with Wealth and Personal Banking.International clients remain our most attractive client base in Wealth and Personal Banking,with revenue around double that of domestic customers.In addition,global transaction banking revenue,a cornerstone of our international co

159、nnectivity,has grown 7%each year since 2019.Secondly,we have also reshaped our portfolio through strategic exits in continental Europe and the Americas.We have exited our domestic mass market retail business in the US,and are in the process of selling our retail banking operations in France,our bank

160、ing business in Canada,our business in Russia and our branch operations in Greece,subject to regulatory and governmental approvals.We have taken actions to improve the returns profile of the Group,including generating cumulative gross RWA reductions of$128bn since the start of our programme,exceedin

161、g our target of more than$110bn.We have continued to reallocate capital to Asia,with the proportion of our tangible equity allocated to Asia increasing to 47%at the end of 2022,and we remain on track with our medium-to long-term aspiration to increase this to 50%.We have also invested through a seri

162、es of bolt-on acquisitions in Asia,including AXAs business in Singapore and L&T Investment Management in India,and we have increased our stakes in HSBC Life China and HSBC Qianhai.Gross RWA reduction$128bnSince the start of the programme.Target:$110bn by the end of 2022.Technology investment$6.1bn(2

163、019:$5.1bn)1 Based on tangible equity of the Groups major legal entities excluding associates,holding companies,and consolidation adjustments.Capital allocation Asia(as a%of Group tangible equity)12022Medium-to long-term aspiration202147%c.50%42%47%Thirdly,over the last three years we have built a b

164、road and geographically diverse base of profit generation.We remain the leading bank in Hong Kong across key areas including deposits,lending and trade finance,while in mainland China,our business contributed$1.0bn of adjusted profit before tax in 2022,excluding the share of profit from our associat

165、e,Bank of Communications Co.,Limited.We have also grown our businesses in the rest of Asia,with adjusted profit before tax of$4.2bn,up 24%compared with 2019.Outside of Asia,HSBC UK Bank plc delivered$5.0bn of adjusted profit before tax in 2022,while our HSBC Bank plc and US businesses have transform

166、ed into being leaner and more internationally focused.In the Middle East and North Africa,we are the leading bank in capital markets,while in Mexico,the return on average tangible equity was 18.0%in 2022.Fourthly,we have retained our strong focus on cost discipline.Within the past year,notwithstandi

167、ng inflationary pressures,we contained adjusted cost growth compared with 2021.As a result,excluding the benefit of a reduced UK bank levy,adjusted costs have remained flat since 2019,with a 19%increase in technology spend offset by gross saves within our global businesses,operations and other costs

168、.Since 2019,we have taken actions to become a more efficient organisation,reducing our office real estate footprint by 37%,branches by 21%and operations headcount by approximately 11%.As we transformed,we have also built a platform for growth and returns upon which we will build new value creation o

169、pportunities.We have continued to grow our balance sheet,with our deposits growing by 4%and assets growing by 5%each year since 2019.Increasing fee-based revenue and growing our Wealth and Personal Banking franchise remain important priorities for the Group,and we have gained traction,with Wealth re

170、venue up 3%and transaction banking revenue up 7%since 2019.However,given the changes to the macroeconomic environment,together with the implementation of IFRS 17,the metrics Insurance and fees as a percentage of Group adjusted revenue and WPB as a percentage of Group tangible equity are no longer ap

171、propriate to measure our progress in these areas.We continue to view technology as a key enabler of our growth ambitions,and have also increased our investment from approximately$5.1bn in 2019 to$6.1bn in 2022.During the year,we have scaled up existing digital propositions and launched others.Detail

172、s of these can be found on the following pages.Fifthly,we have supported a sustainable dividend policy with strong capital and liquidity.Finally,the above five themes have resulted in a strong platform for growth and returns,upon which we will build new value creation opportunities.HSBC Holdings plc

173、 Annual Report and Accounts 202211Our strategyWealth and Personal BankingAdjusted revenue for our Wealth and Personal Banking business was$24.4bn in 2022,up 16%compared with 2021.This was driven by growth in Personal Banking,where adjusted revenue was$15.9bn,up 37%.We continued to make progress in e

174、xecuting our Wealth,Asset Management and Insurance strategy,attracting net new invested assets of$80bn,compared with$64bn in 2021,with$59bn coming from Asia.Our Asia Insurance value of new business reached$1.1bn,up 24%.We continued to grow our digital propositions during the year.We launched Global

175、Money in the UK and Australia,with the proposition now live in eight markets.This new proposition recorded approximately$11bn of transactions in 2022,enabling customers to make cheaper and faster international payments.We also signed up more than 900,000 users to our Pinnacle financial planning app

176、to bring the total user base to over 1 million.Within our Wealth business,in partnership with BlackRock,we launched Prism,a hybrid advisory service to help investors make more informed investment decisions.$80bnNet new invested assets in 2022.Commercial BankingAdjusted revenue for our Commercial Ban

177、king business reached$16.2bn in 2022,up 29%compared with 2021.Adjusted revenue rose in all regions,and notably in Hong Kong,which grew by 36%.Fee income increased by 8%to$3.7bn,reflecting growth in Global Payments Solutions and Global Trade and Receivables Finance.Our digital propositions have gaine

178、d significant traction,with payments processed on HSBCnet mobile increasing by nearly 62%during the year.Kinetic,our digital business banking account for SMEs in the UK,gained approximately 29,000 customers,taking its overall customer base to approximately 53,000.Business Go,our new global digital p

179、latform for SMEs,has gone live and has grown to over 95,000 users as of 2022.In 2022,we launched our first Banking-as-a-Service proposition in the US with Oracle Netsuite,embedding HSBCs banking products within Oracles Cloud enterprise resource planning platform.We continue to actively help our clie

180、nts with their climate transition goals,and have completed the global roll-out of our core sustainable product suite covering loans,trade finance and bonds.We also launched our enhanced HSBC Sustainability Tracker for Business Banking customers.$3.7bnFee income in 2022.Global Banking and MarketsAdju

181、sted revenue for our Global Banking and Markets business was$15.4bn in 2022,up 10%compared with 2021,driven by strong performances in Global Payments Solutions and Markets and Securities Services,primarily from our Global Foreign Exchange business.During the year,we continued to drive efforts for cr

182、oss-business line collaboration through referrals and cross-sell of products,with adjusted collaboration revenue of approximately$3.7bn in 2022,compared with approximately$3.5bn in 2021.Our Global Banking and Markets franchise remains an internationally connected one,with our clients doing business

183、with us in multiple markets.In 2022,our clients in Europe and the Americas drove approximately$2.6bn of client business into Asia and the Middle East,an increase of approximately 30%.We continued to develop our digital propositions with the launch of HSBC Orion,a new proprietary tokenisation platfor

184、m to issue digital bonds based on distributed ledger technology.We also extended our sustainable investment product range,launching a biodiversity screened equity index created in partnership with biodiversity data specialist Iceberg data lab and Euronext.c.$2.6bnClient business1 booked in the East

185、from clients managed in the Americas and Europe.Focus on our strengthsIn our global businessesIn each of our global businesses,we continue to focus on areas where we are strongest and have opportunities to grow.Delivery in 2022Our strategy centres on four key pillars:focus on our areas of strengths,

186、digitise at scale to adapt our operating model for the future,energise our organisation for growth,and support the transition to a net zero global economy.1 Client business differs from reported revenue as it relates to certain client-specific income,and excludes certain products(including Principal

187、 Investments,GBM other and asset management),Group allocations,recoveries and other non-client-related and portfolio level revenue.It also excludes Hang Seng.GBM client business includes an estimation of client-specific day-one-trade-specific revenue from Markets and Securities Services products,whi

188、ch excludes ongoing mark-to-market revenue and portfolio level revenue such as hedging.Cross-border client business represents the income earned from a clients entity domiciled in a different geography than where the client groups global relationship is managed.Booking location represents the geogra

189、phy of the clients entity or transaction booking location where this is different from where the client groups global relationship is managed.12HSBC Holdings plc Annual Report and Accounts 2022Strategic report|Our strategyStrategic reportEnergise for growth Empowering and energising our colleagues i

190、s crucial for inspiring a dynamic culture.Our Employee engagement index,our headline measure of employee satisfaction,rose to 73%in 2022 from 67%in 2019,our baseline year.The participation rate of the survey also rose from 50%to 78%.We remained focused on creating a diverse and inclusive environment

191、,especially in senior leadership roles,which are those classified as band 3 and above in our global career band structure.We achieved 33.3%female representation in senior leadership positions by the end of 2022,and are on track to achieve our target of 35%by 2025.In 2022,we also set a Group-wide eth

192、nicity strategy to better represent the communities we serve.We are on track to meet this,with 2.5%of leadership roles held by colleagues of Black heritage in 2022.We continued to help our colleagues develop future-ready skills.In 2022,the total learning hours spent on these future-ready skills(digi

193、tal,data,and sustainability)increased to approximately 375,777 hours,up from 334,651 hours in 2021.We outline how we put our purpose and values into practice in the following ESG overview section.For further details on how we plan to energise for growth,see the Social section in the ESG review on pa

194、ge 73.Transition to net zeroIn November,we participated in COP27 to play our part in bringing together the public and private sector to mobilise the transition to a net zero global economy.We also made good progress on our ambitions,including expanding our financed emissions targets to eight sectors

195、 in total,reducing our greenhouse gas emissions,and supporting our customers in their transition to a net zero future including the launch of new climate solutions.Becoming a net zero bankWe continue to pursue our climate ambition to become net zero in our operations and supply chain by 2030,and ali

196、gn our financed emissions to the Paris Agreement goal of net zero by 2050.In 2022,we reduced our absolute greenhouse emissions in our operations to 285,000 tonnes CO2e,which represents a 58.5%reduction from our 2019 baseline.So far,we have set interim 2030 targets for on-balance sheet financed emiss

197、ions for eight sectors.We also published updated energy and thermal coal phase-out policies during the year,which are important mechanisms to help phase down our financed emissions in these areas while supporting our customers in their own transition plans.We plan to extend our financed emissions an

198、alysis to new sectors shipping,agriculture,commercial real estate and residential real estate in future disclosures.We remain committed to setting facilitated emissions targets,and aim to continue to engage with industry initiatives to produce a consistent and comparable cross-industry approach.Supp

199、orting customers through transitionWe have made progress in our ambition to support our customers through their transition to net zero.In 2022,we provided and facilitated a total of$84.2bn of sustainable finance and investments,bringing our cumulative amount since 1 January 2020 to$210.7bn of our$75

200、0bn to$1tn ambition by 2030.Unlocking new climate solutions In 2022,Climate Asset Management,the dedicated natural capital investment manager formed as a joint venture with climate change investment and advisory firm Pollination,achieved commitments of more than$650m across its two natural capital s

201、trategies.We also officially launched Pentagreen,a joint venture with Temasek,to finance the development of sustainable infrastructure in south-east Asia.For further details on our climate ambition,see the Environmental section in the ESG review on page 46.Digitise at scaleWe continued to invest in

202、our technology and operational capabilities to drive productivity across businesses and geographies,and to improve customer experience.In 2022,$6.1bn,or 20%,of our overall adjusted operating expenses were dedicated to technology,up from$5.6bn in 2021.Enhancing our digital propositions to improve cus

203、tomer engagement and journeys remains a significant priority.During the year,just under half of our Wealth and Personal Banking customers were active users of our mobile applications,an increase from 42.7%in 2021,and over 75%of our Commercial Banking customers were active on our digital applications

204、,an increase from 71.0%.Furthermore,in Wealth and Personal Banking,nearly half of sales were generated digitally.Our customer journeys continue to be transformed,for example,in Singapore,our Wealth and Personal Banking customers can now open an account even before they arrive in their new country vi

205、a their mobile phones.To improve our operational efficiency,we continue to deploy technologies at scale in our organisation.Our Cloud adoption rate,which is the percentage of our technology services on the private or public Cloud,increased from 27%to 35%.Growth and returnsLooking ahead,we will conti

206、nue to build on our areas of strength,using our international connectivity and strong geographical diversity spanning every region.We will also continue to drive our transaction banking,wealth and digital platforms in order to grow fee income.Cost discipline remains a priority for us,while we drive

207、investment in technology to increase productivity and growth.As a result,we expect to achieve more than 12%RoTE from 2023 onwards the highest in a decade and have substantial distribution capacity in 2023 and 2024.HSBC Holdings plc Annual Report and Accounts 202213Our strategyWe conduct our business

208、 to support the sustained success of our customers,people and other stakeholders.Our approachWe are guided by our purpose:to open up a world of opportunity for our colleagues,customers and communities.Our purpose is underpinned by our values:we value difference;we succeed together;we take responsibi

209、lity;and we get it done.Our purpose and values help us to deliver our strategy and unlock long-term value for our stakeholders.Our approach to ESG is shaped by our purpose and values and a desire to create sustainable long-term value for our stakeholders.As an international bank with significant bre

210、adth and scale,we understand that our climate,economies,societies,supply chains and peoples lives are interconnected.We recognise we can play an important role in tackling ESG challenges.We focus our efforts on three areas:the transition to net zero,building inclusion and resilience,and acting respo

211、nsibly.Transition to net zeroThe transition to net zero is one of the biggest challenges for our generation.Success will require governments,customers and finance providers to work together.Our global footprint means that many of our clients operate in high-emitting sectors and regions that face the

212、 greatest challenge in reducing emissions.This means that our transition will be challenging but is an opportunity to make an impact.We recognise that to achieve our climate ambition we need to be transparent on the opportunities,challenges,related risks and progress we make.To deliver on our ambiti

213、on,we require enhanced processes,systems,controls,governance and new sources of data.We continue to invest in our climate resources and skills,and develop our business management process to integrate climate impacts.As we enhance our systems,processes,controls and governance,certain aspects of our r

214、eporting will rely on manual sourcing and categorisation of data.Given the challenges on data sourcing as well as the evolution of our processes as mentioned above,this has had an impact on certain climate disclosures including thermal coal.In 2023,we will continue to review our approach to our disc

215、losures,with our reporting needing to evolve to keep pace with market developments.We set out in more detail the steps we are taking on our climate ambitions in the ESG review on page 47.Build inclusion and resilienceBuilding inclusion and resilience helps us to create long-term value.By removing ba

216、rriers and being a fair and equitable bank,we can attract the best talent,serve a wider customer base and support our communities.An inclusive,healthy and stimulating environment for our people helps us to succeed.We have set goals for gender and ethnic diversity,and we focus on employee sentiment,a

217、nd support our colleagues resilience through well-being and learning resources.We strive to provide inclusive and accessible banking for our customers.We help our customers to build financial resilience by providing resources that help them manage their finances,and services that help them protect w

218、hat they value.This is critical in challenging times,as we continue to support our stakeholders in the wake of Covid-19 and in the face of a rising cost of living.Finally,we give back to our communities through philanthropic giving,disaster relief and volunteering.Act responsiblyWe are focused on ru

219、nning a strong and sustainable business that puts the customer first,values good 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 for our customers and the financial markets in which we op

220、erate.Customer experience is at the heart of how we operate.We aim to act responsibly and with integrity across the value chain.On page 16,we have set out ways that we have supported our stakeholders through a challenging year.ESG overviewESG disclosure map and directoryTransition to net zeroOur cli

221、mate ambitionRead more on our approach to the transition to net zero Page 46Read more on our progress made against our ambition to achieve net zero in our financed emissions by 2050 Page 50Read more on our progress made against our$750bn to$1tn sustainable finance and investment ambition Page 57Read

222、 more on our ambition to achieve net zero in our own operations by 2030 Page 62Detailed Task Force on Climate-related Financial Disclosures(TCFD)We make disclosures consistent with Task Force on Climate-related Financial Disclosures(TCFD)recommendations,highlighted with the symbol:TCFD Page 68Build

223、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 gap statistics Page 74Pay gap disclosures Page 75Act responsiblyHow we govern ESG Read more on our ESG governance appro

224、ach and human rights Page 86 Page 87Human rights and modern slavery disclosuresHow our ESG targets link to executive remunerationRead more on our ESG targets embedded in executive remuneration Page 16;Pages 282 to 287Our ESG Data PackOur ESG Data Pack provides more granular ESG information,including

225、 the breakdown of our sustainable finance and investment progress,and complaints Holdings plc Annual Report and Accounts 2022Strategic report Strategic reportEngaging with our stakeholders and our material ESG topicsEngaging with our stakeholders is core to being a responsible business.To determine

226、material topics that our stakeholders are interested in,we conduct a number of activities throughout the year,including engagements outlined in the table below.Disclosure standards such as the TCFD,World Economic Forum(WEF)Stakeholder Capitalism Metrics and Sustainability Accounting Standards Board(

227、SASB),as well as the ESG Guide under the Hong Kong Stock Exchange Listing Rules and other applicable rules and regulations,are considered as part of the identification of material issues and disclosures.Supporting our customers facing a rising cost of livingWe know that many of our customers around

228、the world are facing increasing cost of living pressures from higher inflation,and we are committed to helping them.Colleagues across our global businesses have been reaching out to customers to provide them with increased access to support,such as free financial health checks,as well as proactively

229、 contacting those who we believe could benefit from additional assistance.Proactive supportWe have focused our support on our customers in the UK,which is our largest market to be affected by rising cost of living pressures,using our guidelines and procedures to help provide the right outcomes.We al

230、so engage closely and regularly with our key regulators to help ensure we meet their expectations of financial institutions activities more generally during volatile markets.For our personal customers in financial difficulty,we enhanced our range of digital resources,with the launch of a new Rising

231、cost of living hub on our public website.The hub provides useful articles and tools to help budget,manage money and gain access to the range of support we are providing.Other measures in 2022 included:conducting a review of our existing tools and services,helping to ensure requests for borrowing rem

232、ained affordable;helping those most in need with temporary support,such as reducing overdraft borrowing costs in eligible accounts;providing the opportunity to mortgage customers coming to the end of an existing fixed rate to secure a new rate earlier;and removing the payments of penalties for custo

233、mers in need of funds having to close fixed-rate savers accounts early.In our CMB business,our focus has been towards helping Business Banking clients exhibiting signs of financial vulnerability,as well as participating in local government-backed initiatives targeted at extending financial support t

234、o SMEs.When a customer is in need of assistance,we review on a case-by-case basis,with potential solutions including repayment holidays,extending loan repayments and offering extensions to collection periods.Other measures in 2022 included:improving our customer support and education,including throu

235、gh webinars and our financial well-being website,to guide how best to improve financial resilience and forecast cash flows;enhancing the identification of customers exhibiting signs of financial vulnerability,by using data and front-line insights provided from relationship management teams;increasin

236、g the education provided to our colleagues on the various forms of financial support available to clients;and proactively getting in touch with customers to help ensure awareness of available support,including communicating with over 40,000 SMEs,and increasing the number of outbound calls in the fou

237、rth quarter of 2022 by 190%,when compared with the previous quarter,to those displaying signs of lower financial resilience.For further details on our conduct and product responsibilities,see the ESG review on page 94.For further details of how we are supporting our colleagues amid rising inflation,

238、see page 25.Our stakeholdersHow 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 CybersecurityEmployeesOur colleagues voices are heard through our employee

239、Snapshot survey,Exchange meetings,and our speak-up channels,including our global whistleblowing platform,HSBC Confidential Employee training Diversity and inclusion Employee engagement InvestorsWe engage with our shareholders through our AGMs,virtual and in-person meetings,conferences and our annual

240、 investor survey Thermal coal policies Energy policies Becoming a net zero bank in our own operations and financed emissionsCommunitiesWe welcome dialogue with external stakeholders,including non-governmental organisations(NGOs)and other civil societies groups.We engage directly on specific issues a

241、nd by taking part in external forums and working groups Financial inclusion and community investmentRegulators and governmentsWe proactively engage with regulators and governments to facilitate strong relationships through virtual and in-person meetings and by responding to consultations individuall

242、y and jointly via industry bodies Anti-bribery and corruption Conduct and product responsibilitySuppliersOur code of conduct for suppliers of goods and services sets out how we engage with our suppliers on ethical and environmental performance Supply chain management Human rights1 These form part of

243、 our ESG disclosures suite together with other requirements,and are not exhaustive or exclusive to one stakeholder group.For further details on our disclosures,see our ESG review and ESG Data Pack,as well as our ESG reporting centre at Holdings plc Annual Report and Accounts 202215ESG overviewOur ES

244、G ambitions,metrics 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 us achieve our environment and social sustainability goals.They also help us to improve employee

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

246、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.We have developed a forward-looking roadmap to consider greater use of ESG measures in executive perfor

247、mance assessment.For a summary of how all financial and non-financial metrics link to executive remuneration,see pages 282 to 287 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

248、 how well we are doing,see the ESG review on page 43.Financed emissions28 sectors Number of sectors where we have set on-balance sheet financed emissions targets.Ambition:Achieve net zero in our financed emissions by 2050.Sustainable finance and investment3$210.7bn Cumulative total provided and faci

249、litated since January 2020.(2021:$126.7bn)Ambition:Provide and facilitate$750bn to$1tn of sustainable finance and investment by 2030.Net zero in our own operations458.5%Cumulative reduction in absolute operational greenhouse gas emissions from 2019 baseline.(2021:50.3%)Ambition:Achieve net zero in o

250、ur own operations and supply chain by 2030.1 For further details of our approach to transition to net zero,methodology and PwCs limited assurance reports,see See page 52 for further details on our targets for six of these sectors,which include oil and gas;power and utilities;cement;iron,steel and al

251、uminium;aviation;and automotive.See page 66 for further details about our thermal coal mining and coal fired power targets,as well as our thermal coal phase-out policy.3 In October 2020,we announced our ambition to provide and facilitate between$750bn to$1tn of sustainable finance and investment by

252、2030.For further details and breakdown,see the ESG review on page 58.For details on how this target links with the scorecards,see page 282.4 This absolute greenhouse gas emission figure covers scope 1,scope 2 and scope 3 business travel emissions.For further details of how this target links with the

253、 scorecards,see page 282.5 Senior leadership is classified as those at band 3 and above in our global career band structure.The progress for the ethnicity target is tracked from a 31 December 2020 baseline against our 2020 commitment to double the number of Black senior leaders.We have since refined

254、 our approach to ethnicity by focusing on targets by market.For further details,see the ESG review on page75.For details on how this target links with the scorecards,see page 282.6 For further details,see the ESG review on page 77.For details on how this target links with the scorecards,see page 282

255、.7 The completion rate shown relates to the financial crime Take another look training module and conduct Taking responsibility training module in 2022.8 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

256、executive scorecards.This represents a change from 2021,when the metric was based on all markets where benchmarking studies were run.For further details of customer satisfaction,see the ESG review on page 89.For further details of how this target links with the scorecards,see page 282.Gender diversi

257、ty533.3%Women in senior leadership roles.(2021:31.7%)Target:Achieve 35%women in senior leadership roles by 2025.Ethnic diversity537%increase Of Black colleagues in senior leadership roles from 2020 baseline.(2021:17.5%increase)Target:Double the number of Black colleagues in senior leadership roles b

258、etween 2020 and 2025.Employee engagement673%Employee engagement score.(2021:72%)Target:Maintain 72%in the Snapshot Employee engagement index.Conduct training798%Employees who completed conduct training in 2022.(2021:99%)Target:At least 98%of employees complete conduct and financial crime training ea

259、ch year.Customer satisfaction8 4 out of 6 WPB markets that sustained top-three rank and/or improved in customer satisfaction.(2021:5 out of 6)Target:To be ranked top three and/or improve customer satisfaction rank.5 out of 6 CMB markets that sustained top-three rank and/or improved in customer satis

260、faction.(2021:2 out of 6)Target:To be ranked top three and/or improve customer satisfaction rankEnvironmental:Transition to net zero1 Social:Build inclusion and resilienceGovernance:Acting responsibly16HSBC Holdings plc Annual Report and Accounts 2022Strategic report|ESG overviewStrategic reportTask

261、 Force on Climate-related Financial Disclosures(TCFD)TCFDConnecting international investors to sustainable solutions We are connecting investors around the world with governments to support the transition to net zero.In May,we helped the Indonesian government raise$3.25bn in an Islamic bond,known as

262、 a sukuk,with$1.5bn of the proceeds dedicated to be used exclusively for eligible spending that delivers on the UNs Sustainable Development Goals,with guidance and support from the UNDP.We were joint lead manager and joint bookrunner,and were also mandated as joint green structuring adviser.The orde

263、r book topped$10bn,with most of the buyers from Asia and the Middle East.The deal demonstrated how our specialist expertise can build trusted relationships.We have been discussing green financing solutions with the Indonesian government since 2018 and were previously appointed to structure both its

264、green and sustainability financing programmes.The Financial Stability Boards Task 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,transparent reporting to help communi

265、cate and track our progress.We will advocate the same from our customers,suppliers and the industry.We have set out our key climate-related financial disclosures throughout the Annual Report and Accounts 2022 and related disclosures.In 2022,while recognising that further work lies ahead as we develo

266、p our management and reporting capabilities,we made certain enhancements to our disclosures.These include reporting relevant quantitative results from our first internal climate-related scenario analysis,including the carbon prices that we used.We also began to incorporate climate-related considerat

267、ions into our annual financial planning cycle,and disclosed how management has considered the impact of climate-related risks on our financial position and forward-looking performance.We have considered our comply or explain obligation under the UKs Financial Conduct Authoritys Listing Rules,and con

268、firm that we have made disclosures consistent with the 11 TCFD Recommendations and Recommended Disclosures 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 20

269、30 targets.While the NZBA define 2030 as intermediate,we use different time horizons for climate risk management.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 f

270、ramework.In 2022,we disclose interim 2030 targets for on-balance sheet financed emissions for eight sectors as we outline on page 18.For the shipping sector,we chose to defer setting a baseline and target until there is sufficient reliable data to support our work,allowing us to more accurately trac

271、k progress towards net zero.In March 2022,we said we would set capital markets emissions targets for the oil and gas,and power and utilities sectors based on the industry reporting standard from the Partnership for Carbon Accounting Financials(PCAF)once published.We remain committed to setting facil

272、itated emissions targets,and aim to continue to engage with industry initiatives to produce a consistent and comparable cross-industry approach.We intend to review the financed emissions baselines and targets annually,where relevant,to help ensure that they are aligned with market practice and curre

273、nt climate science.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 physical risk metrics.This i

274、s due to transitional challenges in relation to data limitations.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 disclose partial scope 3 greenhouse gas emissions including business trav

275、el,supply chain and financed emissions.In relation to financed emissions,we published on-balance sheet financed emissions for six sectors as detailed on page 18.Future disclosure on financed emissions,and related risks is reliant on our customers publicly disclosing their carbon emissions and relate

276、d risks.We aim to disclose financed emissions for additional sectors in our Annual Report and Accounts 2023 and related disclosures.Our approach to disclosure of financed emissions for additional sectors can be found at: a full summary of our TCFD disclosures,including detailed disclosure locations

277、for additional information,see pages 68 to 72.The additional information section on page 423 provides further detail.HSBC Holdings plc Annual Report and Accounts 202217ESG overviewClimate strategic pillars and ambitionMetrics and indicatorsProgress to dateBecoming a net zero bankAlign our financed e

278、missions to achieve net zero by 2050 or sooner Number of sectors analysed for financed emissions1 We have published on-balance sheet financed emissions for six sectors including cement;iron,steel and aluminium;aviation;and automotive.We also continue to disclose our financed emissions for the oil an

279、d gas and power and utilities sectors2(see pages 50 to 56).Be net zero in our operations and supply chain by 2030 or sooner Absolute operational greenhouse gas emissions(tonnes CO2e)358.5%cumulative reduction in absolute greenhouse gas emissions from 2019 baseline(see page 62)Percentage of renewable

280、 electricity sourced across our operationsIncrease from 37.5%in 2021 to 48.3%(see page 62)Percentage of energy consumption reduced24.0%cumulative reduction in energy consumption from 2019 baseline(see page 62)Supporting our customers Support our customers in their transition to net zero and a sustai

281、nable future Sustainable finance and investment provided and facilitated($bn)4$210.7bn cumulative progress since 2020(for further breakdown see page58)Unlocking new climate solutions Help transform sustainable infrastructure into a global asset class,and create a pipeline of bankable projects Natura

282、l capital investmentClimate Asset Management,which forms part of our goal to unlock new climate solutions,received commitments of over$650m for its two strategies:the Natural Capital Strategy and the Nature Based Carbon Strategy(for further details of our approach to responsible investment,see page

283、60)Climate technology investmentAchieved our initial goal to fund$100m to climate technology companies,and subsequently raised our target to$250m(see page 60)Philanthropic investment to climate innovation ventures,renewable energy,and nature-based solutionsCommitted$95.8m to our NGO partners since 2

284、020,as part of the Climate Solutions Partnership(see page 84)1 For further details of our approach and methodology,see our Financed Emissions Approach and Methodology Update at Our disclosures for our 2019 emissions for our oil and gas,and power and utilities sectors have been revised.For further de

285、tails,see page 55.3 Our reported scope 3 greenhouse gas emissions of our own operations in 2022 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 63 and our ESG Data Pack at further details of our

286、methodology and PwCs limited assurance report,see The detailed definitions of the contributing activities for sustainable finance are available in our revised Sustainable Finance and Investment Data Dictionary 2022.For this,together with our ESG Data Pack and PwCs limited assurance report,see we mea

287、sure our net zero progress TCFDOne of our strategic pillars is to support the transition to a net zero global economy.Our ambition is to align our financed emissions to the Paris Agreement goal to achieve net zero by 2050 or sooner.The Paris Agreement aims to limit the rise in global temperatures to

288、 well below 2C,preferably to 1.5C,above pre-industrial levels.To limit the rise in global temperatures to 1.5C,the global economy would need to reach net zero greenhouse gas emissions by 2050.We have set interim 2030 targets for on-balance sheet financed emissions for eight sectors.These include six

289、 sectors for which we have reported 2019 and 2020 emissions:oil and gas;power and utilities;cement;iron,steel and aluminium;aviation;and automotive.We have also set targets for thermal coal power and thermal coal mining.We remain committed to setting facilitated emissions targets,and aim to continue

290、 to engage with industry initiatives to produce a consistent and comparable cross-industry approach.We also recognise that we require enhanced capabilities and new sources of data,as set out on page 47.We continue to track our progress against our ambition to provide and facilitate$750bn to$1tn of s

291、ustainable finance and investment by 2030,aligned to our published data dictionary,and our ambition to achieve net zero in our own operations and supply chain by 2030.We also recognise that green finance taxonomies are not consistent globally,and evolving taxonomies and practices could result in rev

292、isions in our sustainable finance reporting going forward.In the year ahead we plan to set interim targets for financed emissions across additional sectors and will continue our transformation programme to embed the climate transition into our core business and risk processes.We will continue to wor

293、k on our climate transition plan,which will bring together in one place our financed emissions targets and climate strategy,with how we plan to embed this into our processes,infrastructure,governance and engagement.We plan to publish this in 2023,and update on progress annually thereafter.We acknowl

294、edge this is a journey and recognise that regular reassessment will be needed to take into account climate scenarios,better data and revisions in reporting standards,as well as to reflect real world developments and trends.Our modelling inputs and assumptions will be impacted over time by the evolut

295、ion of external parameters,such as policy and regulatory changes across our markets,technology innovation uptake,and macroeconomic events beyond our control.As a result of this,certain metrics and targets may need to be revised.In the following table,we set out our metrics and indicators and assess

296、our progress against them.For further details of our approach to measuring financed emissions,including scope,methodology,assumptions and limitations,see page 50.18HSBC Holdings plc Annual Report and Accounts 2022Strategic report|ESG overviewStrategic reportResponsible business cultureWe have the re

297、sponsibility to help protect our customers,our communities and the integrity of the financial system.In this section,we outline our requirements under the Non-Financial Reporting Directive.Employee matters We are opening up a world of opportunity for our colleagues through building an inclusive orga

298、nisation that values difference,takes responsibility and seeks different perspectives for the overall benefit of our customers.At times our colleagues may need to speak up about behaviours in the workplace.We encourage colleagues to speak to their line manager in the first instance,and our annual em

299、ployee Snapshot survey showed that 84%of colleagues have trust in their direct manager.We recognise that at times people may not feel comfortable speaking up through the usual channels.HSBC Confidential is our global whistleblowing channel,allowing our colleagues past and present to raise concerns c

300、onfidentially and,if preferred,anonymously(subject to local laws).We promote an environment where our colleagues can expect to be treated with dignity and respect.We are an organisation that acts where we find behaviours that fall short.Our index measuring colleagues confidence in speaking up increa

301、sed by 1 percentage point to 76%in 2022,significantly above the industry benchmark.We aspire to be an organisation that is representative of the communities which we serve.To help achieve this,we have set commitments on the gender and ethnic diversity of our senior leadership.We have committed to ac

302、hieving a target of 35%of senior leadership roles held by women(classified as those at band 3 and above in our global career band structure)by 2025.We remain on track,having achieved 33.3%in 2022.In July 2020,we set out our early global ethnicity commitments to double the number of Black employees i

303、n senior leadership roles.To date we have achieved a 37%increase through leadership development,inclusive hiring practices and developing the next generation of high-performing talent.We have made good progress,but we know there is more to be done.To support our ambition,we have placed a strong focu

304、s on enhancing the quality and transparency of our ethnicity data through the expansion of our self-identification capability.As our self-disclosures improve,we can use this data to develop market-specific goals that are connected to the communities we serve.All employees52%48%Senior leadership133%6

305、7%Holdings Board33%67%MaleMaleMaleFemaleFemaleFemaleThe table below outlines high-level diversity metrics.1 Senior leadership is classified as those at band 3 and above in our global career band structure.For further details of how we look after our people,including our diversity targets,transformat

306、ion employee metrics and how we encourage our employees to speak up,see the Employees section of the ESG review on page 74.Social mattersWe have a responsibility to invest in the long-term prosperity of the communities where we operate.We aim to provide people with the skills and knowledge needed to

307、 thrive in the post-pandemic environment,and through the transition to a sustainable future.For this reason,we focus our support on programmes that help develop employability and financial capability.We also support climate solutions and innovation,and contribute to disaster relief when needed.For f

308、urther details of our programmes,see the Communities section of the ESG review on page 83.Human rights Our commitment to respecting human rights,principally as they apply to our employees,our suppliers and through our financial services lending and investment,is set out in our Statement on Human Rig

309、hts.This statement,along with our statements under the UKs Modern Slavery Act,is available on further details,see the Human rights section of the ESG review on page 87.Anti-corruption and anti-briberyWe require compliance with all applicable anti-bribery and corruption laws in all markets and jurisd

310、ictions in which we operate.We set a high standard globally in our global anti-bribery and corruption policy,which also focuses on the spirit of relevant laws and regulations to help demonstrate our commitment to ethical behaviours and conduct as part of our environmental,social and corporate govern

311、ance.Environmental mattersFor details of our climate ambition and carbon emission metrics,see the ESG review on page 46.Non-financial information statementThis section primarily covers our non-financial information as required by the regulations.Other related information can be found as follows:For

312、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 38 to 41.Equipping our colleagues with sustainability skillsWe are developing a range of sustainability-rela

313、ted resources and initiatives to help equip our colleagues with the skills to be able to support our net zero ambition.We expanded mandatory training that educates all colleagues on our approach to sustainability.In October,we launched the Sustainability Academy to equip specific colleagues with key

314、 skills to improve their understanding of topics ranging from climate change to biodiversity.We launched an ESG-themed recognition campaign through the At Our Best platform that encouraged colleagues to recognise each others ESG contributions.The campaign was well supported with nearly 200,000 uniqu

315、e recognitions made,an increase of 50%on the previous years Spotlight campaign.For further details on the Sustainability Academy,see page 82.HSBC Holdings plc Annual Report and Accounts 202219ESG overviewThe Board is committed to effective engagement with all our stakeholders and seeks to understand

316、 their interests 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 compa

317、ny,including how 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 understands its fundamental role in formulating and overseeing the Groups strategy to achieve long-ter

318、m success and fulfil its purpose of opening up a world of opportunity.Every scheduled Board meeting features the Groups strategy as an item of discussion.When taking principal decisions,the Directors remain mindful that the matter for consideration should be aligned to one of the four strategic pill

319、ars.For further details of our purpose,values and strategy,see pages 4 and 11 to 13.The Board,together with senior management,have given high priority to the format and content of papers presented to the Board and its committees for their consideration.The Group Chief Executive and the Group Chairma

320、n promote best governance practice by requiring that materials contain appropriate information to allow Directors to take informed decisions in keeping with their duties.The Corporate Governance and Secretariat team supports the provision of relevant information by providing governance guidance and

321、direction regarding the key areas for consideration in relation to section 172 factors in order to help the Directors to understand the likely consequences of their decisions long term.The Group Chief Executives regular report to the Board provides insights into key stakeholder sentiments by highlig

322、hting the interactions he has held with customers,regulators,employees and other stakeholders,and the importance of and learnings from these engagements.This informs the Board as to how the Group fosters its relationships with stakeholders and how the Groups business affects the environment and the

323、communities it serves.Directors also participate in a variety of stakeholder engagement events,which support their understanding of key issues and challenges,which can then be factored into future decision making.The Board recognises that to promote the Groups success,the right culture must exist th

324、roughout the organisation,be clearly understood and be consistently applied.This is supported by HSBCs values,which help us succeed together by connecting,collaborating and acting with a shared purpose.Each Board meeting begins with a cultural moment,which includes observations of behaviours within

325、the Group aligned to our purpose and values.The Board and its committees also receive updates on conduct issues and any consequences for stakeholders at its meetings,in particular from the Group Chief Risk and Compliance Officer and Group Human Resources Officer.The Groups refreshed conduct approach

326、,approved in 2021,also helps to support the consistent application of conduct principles across the organisation,acknowledging the importance of maintaining a good reputation for high standards of business conduct.For further details on the Boards oversight of culture,see the Corporate governance re

327、port on page 255.Stakeholder engagement and key considerations for the BoardThe Board continued to focus on its engagement with our key stakeholders,acknowledging that this engagement is core to being a responsible business and furthers the fulfilment of our strategy.In discharging their responsibil

328、ities,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 course of the year.Virtual and physical meetings During 2022,the Board was able to resume its ac

329、tive engagement with stakeholders in person following two years of Covid-19-related restrictions.The Board met physically in several international locations,where it was able to carry out engagements with a wide range of stakeholders.For further details of how we engaged with our stakeholders,see pa

330、ges 21 and 253.We hosted our second hybrid AGM and engaged directly with our investors leading up to and during the event.The Informal Shareholders Meeting in Hong Kong also resumed for the first time since 2019 and attracted hundreds of shareholders to attend in person to receive an update on the G

331、roups strategy and discuss the latest financial performance with the Group Chairman,the Group Chief Executive and the Group Chief Financial Officer.We are focused on treating our shareholders fairly,by having a consistent approach to engagement and communication with them,and this approach is demons

332、trated by our refreshed shareholder communication policy.Such a policy helps to support the Board to act fairly between members of the company.Doing business responsiblyMaintaining a transparent and trusting relationship with our regulators remains key to helping us ensure that we do business respon

333、sibly and that we are able to respond to challenges appropriately.In addition to continuous assessment meetings with the UK regulator(including with Board committee chairs),the Group Chairman,the Group Chief Executive and the Group Chief Financial Officer met with our regulators in the UK and Hong Kong on a regular basis.These included meetings in connection with our recovery and resolution planni