Our ESG Governance
Hang Seng (the 'Bank') is dedicated to maintaining high standards of ESG governance by referencing market trends and responding to the guidelines, requirements and increasing expectations from our regulators, shareholders, customers, employees and other stakeholders. The Board takes overall responsibility for our ESG strategy, overseeing the executive management in developing the approach and execution of the strategy, as well as the associated reporting. In driving the ESG-related goals and targets, the Board is supported by the ESG Steering Committee, Disclosure and Controls Committee, Risk Management Meeting and four Working Groups to govern and ensure accountability for our ESG performance throughout the Bank's operating levels and across its markets.
According to the Environmental, Social and Governance Reporting Guide ('ESG Guide') of Hong Kong Exchanges and Clearing Limited ('HKEX') i.e. Appendix C2 of the Main Board Listing Rules, the Board was updated regularly about the progress of ESG-related matters at its meetings held in 2023. In these meetings, the Board noted the progress and updates of the ESG-related matters of the Bank and exercised oversight.
The Board also confirmed the effectiveness and adequacy of the Bank's disclosure framework, including the risk management and internal control systems relating to ESG. [...] ESG Governance Structure Board Level Governance
Board Level Governance
• [Establish and approve the Bank's strategy and objectives, ]
including technology and ESG strategies
Board - [Approve and monitor plans for achieving strategic objective ]
Executive Committee Risk Committee Audit Committee - [Review the Bank's overall corporate governance ]arrangements, including ESG and climate governance
Executive Committee
• [Facilitate the Board's oversight of ESG matters by endorsing ]
and recommending key ESG matters for Board's approval
• [Support the development and delivery of the Bank's ESG and ]
climate strategy, key policies and material commitments by providing oversight, coordination and management of ESG commitments and initiatives
Risk Committee
• [Maintain oversight of delivery plans to ensure that the Bank ]
develops robust climate risk management capabilities
• [Oversee and review ESG-related initiatives to assess the ]
risk profile
Audit Committee
• [Review and challenge ESG and climate-related reporting, ]
processes, systems and controls and consider these matters in detail
• [Provide close oversight of the disclosure risks in relation ]
to ESG and climate reporting, amid rising stakeholder expectations
Management Level Governance
ESG Steering Committee
• [Define and set ESG strategy to support the Bank's overall ]
business strategy for value creation, connecting issues from climate change to diversity and inclusion to the Bank's businesses and operations, establishing best practices
• [Oversee and monitor progress against the Bank's ESG ]
strategy, policies, plans, targets, commitments, and execution processes
• [Integrate climate-related issues into the strategy, set ]
climate-related corporate targets, manage public policy engagement that may impact the climate, and assess climate-related risks and opportunities
Supporting Governance
Sustainable Financing Committee (for Wholesale Banking)
• [Review and provide endorsement of categorisation and ]
labelling of lending, in accordance with our sustainable finance categories, which are in line with HSBC Group's Sustainable Finance and Investment Data Dictionary and the relevant Loan Market Association Principles such as Green Loan Principles ('GLPs'), Sustainability Linked Loan Principles ('SLLPs') and Social Loan Principles ('SLPs'), and the declassification of facilities, when requested
• [Agree on best practices and provide steer in latest market ]
developments on sustainable finance
• [Provide sales enablement support to frontline on marketing ]
approach in related to individual transactions raised by business
Disclosure and Controls Committee
• [Review all material disclosures to ensure our disclosure ]
obligations are satisfied
• [Review major controls, accounting judgements and ]
conclusions, regulatory and financial reporting and external disclosures including relevant papers, reports and documents for publication
Risk Management Meeting
• [Support the Chief Risk and Compliance Officer in exercising ]
Board delegated risk management authority
• [Monitor ESG and climate-related risks and oversee ]
mitigating actions
Work Stream Level
Capability and Engagement Working Group
• [Support our climate strategy through onboarding ]
training, development programmes, staff communication and engagement
ESG Disclosure Working Group
• [Oversee the governance framework and production of the ]
ESG Report
• [Drive the ESG disclosure process and its reporting accuracy ]
in compliance with various disclosure requirements
• [Keep abreast of the market developments and best ]
practices in relation to ESG disclosures
Community Investments Working Group
• [Oversee the development and implementation of the Bank's ]
community investment programmes
• [Plan strategically to support and contribute to the ]
communities we serve
Net Zero Operations Working Group
• [Coordinate within the Bank to drive environmental initiatives]
• [Establish, implement and monitor environmental key ]
performance indicators ('KPIs') and metrics related to the Bank's operations
• [Drive the Bank to achieve net zero in operations by 2030 ]
through the development of roadmaps, strategies, policies and best practices
• [Foster collaboration and communication among key ]
stakeholders across the Bank to ensure all parties are working towards the net zero goal