Corporate SustainabilityJanuary - June 2012

Contents

Sustainability at HSBC………………………………………………………………………..1

Climate Change……………………………………………………………………………….2

Sustainable Finance…………………………………………………………………………..3

Community Investment……………………………………………………………………….4

HSBC Young Entrepreneurs Challenge 2012……………………………………..5

HSBC Prothom Alo Language Competition 2012…………………………………6

Water: Beyond Blue…………………………………………………………………..7

‘Butterflies of Bangladesh’ Photography Exhibition………………………………..8

HSBC Kali O Kolom Young Poet and Writers Awards.…………………………...9

‘Ekattorer Birjoddhah’ Book Publication…………………………………………….10

Other Community Initiatives………………………………………………………….11

Footprint Management………………………………………………………………………..12

Diversity and Inclusion………………………………………………………………………..13

Facts and Figures……………………………………………………………………………..14

Sustainability at HSBC

Its four pillars of corporate sustainability are:

Climate Change

Sustainable Finance

Footprint Management

Community Investment

Education50%

Environment25%

Others25%

At HSBC, the term sustainability means achieving sustained profits

for shareholders, developing long-lasting customer relationships,

valuing highly committed employees and managing the social and

environmental impact of its business.

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The three focus areas of HSBC’s Community Investment initiatives

are: Education, Environment and Local Community. About 75% of

its yearly Corporate Sustainability budget is dedicated to improve

Education and Environment condition of the community that it works in.

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Climate Change

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Water is perhaps most affected natural resources due to climate change and

lack of useable water is a burning issue for world population. In 2010, nearly

800 million people were without access to safe water, and 2.5 billion without

access to basic sanitation. Hence, HSBC rolled out a five year long USD 100

billion worth project – HSBC Water Programme.

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HSBC believes that extreme weather events has a long-lasting adverse

impact on its customers and employees and is likely to disrupt business

operations. Climate change presents a range of different types of risk

but it also has the potential to stimulate innovation and development as

businesses adapt to a changing world.

The programme – planned and carried out in partnership with

Earthwatch, WaterAid and WWF - has officially been launched on 12

June 2012 and is believed to make a difference in West-Africa and South-

east Asia by tackling water risks in river basins; bringing safe water and

improved sanitation to over a million people; and raising awareness about

the global water challenge.

Sustainable Finance

HSBC promotes sustainable finance by measuring environmental risk - defining activities that could adversely impact the natural environment (e.g. impacts on protected areas or endangered species) and social risk - defining activities those that could adversely impact communities.

HSBC have policies and guidance on sustainability risk, including sector policies such as chemicals, forest and freshwater.

Its environment-friendly financing policy is also aligned with the Green Banking guidelines circulated by the central bank of Bangladesh.

For every lending proposal, HSBC assigns a SRR (Sustainability Risk Rating) based on customers commitment, capacity, track record for compliance and impact of the sector/business on the environment and finally a composite rating is assigned from the matrix. Lending proposals not meeting the SRR does not qualify for financing.

A variety of resources like Standard Manuals and e-learning courses are developed to help the employees become more aware and adept in handling sustainability risk in business.

HSBC Bangladesh has already started financing renewable energy projects as well as Effluent Treatment Plants (ETP) of different organisation.

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Community Investment

HSBC in Bangladesh makes philanthropic donations to support local community programmes. Many sponsorship programmes are also organised to foster education, environment conservation and community advancement. Furthermore, HSBC also values local heritage and actively engages itself to strengthen its bonding with culture and local values by organising different events and activations.

The bank aims to utilise 75% of its total Community Investment expenditure to Education and environment where around 50% is given on Education and 25% on environment. Remaining amount is invested for the betterment of the local community and includes health, culture, assistance to people with impairments.

HSBC believes that education and the environment are fundamental building blocks for the development of communities. These two also happens to be issues of universal concern around the world. Hence by focusing on these two areas HSBC is channeling its efforts to thebest effect.

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The HSBC Young Entrepreneurs Challenge is a regional business plan competition for, which aims to promote creativity and sharpen the business knowledge of the undergraduate students . In the last 5 years, over 3750 students participated in the Bangladesh round of the competition.

This year, the competition was launched in February and the local finale was held on May 2012. Having contested through multiple rounds of workshops and assessments, 6 finalist teams presented their business ideas in front of an expert jury panel at the Bangladesh finale. The winning teams are:

HSBC Young Entrepreneurs Challenge 2012

Gold Winners: Fireflies for their idea of producing capsule shells from fish fin for the pharmaceuticals industry.

Silver Winners: The Concept Crew for their idea of producing bio-degradable packaging material from agricultural waste and mushroom roots

Bronze Winners: Foursight for their idea of 'Deer farming' to provide venison meat for cuisine

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The HSBC Prothom Alo Bhasha Protijog (Language Competition) is an annual programme jointly organised by HSBC, Bangladesh and leading Bengali daily ' Prothom Alo'. The programme sees participation of primary, secondary and higher secondary level students from different educational institutions and aims to raise awareness about the proper use of Bengali language.

This year, regional competitions were held in remote areas of the country in the span of February – April 2012 period which saw massive participation from young enthusiastic students.

Total regional competitions held: 9Student participation : 6,500Staff Volunteers: 52

The national finale was held on May 2012 in the auditorium of Viqurunnesa Noon Girl’s School where awards were given to the top scorers in different categories.

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HSBC Prothom

Alo

Language Competition 2012

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Marking the World Environment Day 2012, HSBC Bangladesh initiated ‘Water: Beyond Blue’ - a week-long environmental awareness campaign - to familiarise students with the concept of water efficiency. The programme included day-long sessions at 4 schools in the capital:

Dhaka Residential Model School and College

Rajuk Uttara Model High School and College

Banani BidyaniketanViquarunnesa Noon School and

College

Over 1000 students from these schools participated in the environment- educational programme.

Water: Beyond Blue

Along with this, HSBC Water Project (HWP) was announced in Bangladesh in the presence of the Dr Khairul Islam - Country Representative of WaterAid in Bangladesh and Andrew Tilke -CEO of HSBC Bangladesh. In the next five years,

HSBC Water Programme will provide safe water to 0.25 million people and sanitation to 0.4 million people in the north-east and north-western regions of Bangladesh .

‘Butterflies of Bangladesh’

Photography Exhibition

HSBC sponsored the photography exhibition and book publication of four of its enthusiastic, environment-loving staff members. Field research and photography work done by these young employees was titled ‘Butterflies species of Bangladesh’ and were displayed in a week-long exhibition at the Drik Gallery in the capital city.

The exhibition was formally inaugurated on 15 April 2012 by Asaduzzaman Noor – Member of Parliament. Andrew Tilke – CEO of HSBC Bangladesh, and other eminent personalities were present on the occasion.

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HSBC Kali O Kolom

Young Poet and Writers Award

HSBC Bangladesh, in partnership with the literary magazine 'Kali O Kolom, initiated the ‘HSBC Kali O Kalam Young Poets and Writers Award’. The award programme seeks to recognise young talents in the contemporary literary field and is given in four categories.

This year, the awards giving ceremony of HSBC Kali O Kolom Young Poet and Writer Awards 2011 was held at the main auditorium of Bangladesh National Museum on April 7 2012. Finance Minister Abul Maal Abdul Muhith was present as chief guest at the prize giving ceremony.

The four young winners who received the awards are:

Poetry: Subhasis Sinha - for ‘Howa Na Howa-r Gaan’

Prose: Sakrito Noman - for ‘Rajnoti’

Essay: Suman Sazzad – for ‘Prokriti, Prantikota O Jatisatwar Sahitya’

Liberation War-based novel: Mizanur Khan - for ‘Sonar Poromtola’

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‘Ekattorer

Birjoddha’

book publication ceremonyHSBC Bangladesh and the Daily Prothom Alo have jointly published the first volume of the book, ‘Ekattorer Birjoddha’ – which means ‘War heroes from 1971’ - to commemorate the great contribution made by our valiant freedom fighters in the Liberation war of 1971.

The book has been formally unveiled through a ceremony held on 13 April 2012 - graced by the presence of freedom fighters, dignitaries, intellectuals, eminent cultural activists and media personnel.

Honourable Minister for Planning, Government of the People’s Republic of Bangladesh - Air Vice Marshall (Retired) A K Khandker, Bir Uttam was the chief guest of the programme while the Governor of the Bangladesh Bank - Dr Atiur Rahman attended as the special guest. The gracious presence of the freedom fighters from remote corners of the country has made this humble initiative a truly memorable one. The event ended with rendition of patriotic songs by noted artists Alam Ara Minu, MIta Huq and Bappa Majumdar.

200 students in the TMSS run schools

350 children in the SEID Trust

120 children in Disabled Welfare Society

Provide computer skill training to 60 visually impaired students in BERDO

Free vaccination for children is a regular health initiative taken by HSBC. In January 2012, HSBC Bangladesh observed Chittagong Hepatitis Day in the port city where free hepatitis-B vaccination were provided to 435 children.

HSBC also invests in the community by joining up with notable organisations to provide educational support to students. In the first half of 2012, educational support were given to:

Other Community Initiatives

Along with this, HSBC in partnership with HASAB carried out an awarenesss building campaign titled ‘JiC OIKKO’ which focuses on HIV/AIDS .

Furthermore, on January 2012, employees from HSBC Bangladesh participated in Winter Cloth Distribution programme to provide warm blankets to poor street dwellers on the capital city. Another Winter Cloth Distribution programme was carried on the extreme northern regions with the help of Prothom Alo Bandhusobha and Green World Communications Limited.

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Footprint ManagementHSBC manages its direct environmental impacts by reducing energy and water use, waste and CO2 emissions. To achieve this, environmental performance is included in business operations and sustainability measures are incorporated into internal decision making. Some of the practices are:

Setting reduction targets for its energy and water use and waste and CO2 emissions

Providing circular was given to the employees instructing them on efficient use of natural resources, electronic appliances

To communicate with customers , digital marketing tools like ATM screenshots, Email messages, SMS are being used extensively rather than previous paper-based communication. For example, from January – June 2012 period around 83,500 Electronic Direct Mails (EDM) were given to customers instead of printed letter

Setting default duplex printing options in all PCs

Adopting e-mail based internal communications based to reduce paperwork

Using energy saving bulbs in office premises

Installing solar energy systems at HSBC Dhanmondi Branch and ATM, HSBC Business Development Office in Adamzee Export processing Zone (EPZ)

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Diversity and InclusionHSBC is committed to building a culture where all employees are valued, respected and where their opinions count. HSBC Bangladesh aims to foster diversity by attracting the best people and efficiently utilise their creativity and abilities, regardless of gender, age, sexuality, ethnicity, disability, religious belief, background or any other aspect of personal difference.

As a proactive initiative to promote woman empowerment, HSBC Bangladesh recognised a day-long campaign marking the ‘International Women’s Day’ for the female employees. All female employees got a specially designed greetings card and a token of appreciation. In the afternoon, a customised game show for female employees was held at the HSBC Head office and Management office in Bangladesh. The winners of the game show were awarded with gift baskets and a special cake was cut to celebrate the day. HSBC also observed the international Mother’s Day by congratulating its female employees through internal communication media.

To promote a friendly working environment and fitness among its employees, HSBC Bangladesh organised an inter-departmental cricket tournament called ‘HSBC Hexaside Cricket Tournament’ on early March 2012.

Facts and Figures

The graphical representation of the half yearly performance of Corporate

Sustainability in HSBC, Bangladesh in terms of CS expenditure pattern ,

women empowerment and employee volunteering-hours can be found in

this section.

Total number of Staff volunteers: 166

Total volunteering hours dedicated by employees: 6109

Male and female employee ratio in workforce: 4.5:1

Maternity leave of 6 months applied

along with maternity leave, HSBC offers flexible working hour

arrangement, part-time working policy and home-working facility to its

female staff members

Environment, 6%

Community, 22%

Education, 73%

Community Investment,

46%

Sponsorship, 54%

Corporate Sustainability Expenditure Pattern in First half

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Contact:

The Hongkong and Shanghai Banking Corporation Limited

Management Office:

Level 4, Shanta Western Tower, 186 Bir Uttam Mir

Shawkat Ali Road (Tejgaon-Gulshan Link Road),

Tejgaon I/A, Dhaka 1208, Bangladesh

Tell: 880 2 8878850-55 ext 7014

A pdf version of this report is available at

http://www.hsbc.com.bd/1/2/cs