Corporate Sustainability Report
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1 Corporate Sustainability Report 2009
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3 Contents 2 CEO s Introduction 4 Working with our Customers 6 Managing our Direct Impacts 8 Community Investment Education Environment 12 Others
4 For HSBC it remains fundamental that a sustainable culture is embedded into the very fibre of our organisation in the way we manage our business, our people and our customers.
5 CEO s Introduction 009 was a challenging year as we experienced the effects of the economic downturn. However, the global downturn has brought the importance of running a sustainable business into an even sharper focus. For HSBC it remains fundamental that a sustainable culture is embedded into the very fibre of our organisation in the way we manage our business, our people and our customers. In Malaysia, we maintained our corporate sustainability (CS) projects and initiatives. We have been asked numerous times if the downturn has meant putting CS on hold. Our answer it is during such times that the focus on the social and environmental impacts of our business activity and our commitment to the community in which we operate must remain a core priority. This report highlights the various achievements and areas of improvement in three main areas of sustainability namely, sustainable financing (working with our customers), footprint management (working with our employees) and community investment (working with the community in which we operate). Climate change remains a key issue, particularly the possible social and economic impacts of it. We saw the introduction of various green initiatives by the government and we look forward to be a contributor and be a part of its success. We shall continue to manage our footprint. Targets have been set to reduce waste and usage of water and energy. Following in the footsteps of HSBC offices in some other countries, Malaysia set up the Environmental Management System to ensure consistent and effective monitoring of our direct impacts in In 2010, we will establish further sustainable growth and carry on playing a part in creating a future that will allow the coming generations to prosper. Mukhtar Hussain CEO, HSBC Bank Malaysia Berhad Global Head, HSBC Amanah Corporate Sustainability Report 2009 >> CEO s Introduction 2
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7 Working with our Customers SBC aims to offer customers a high quality of service and experience. We also aim to create products and services that provide environmental/social benefits and commercial returns. oil production. Whilst there will continue to be issues amongst the various stakeholders, issues that arose throughout 2009 have been resolved satisfactorily. In July 2009, HSBC offered an e-statement option to all retail and corporate customers in an effort to reduce our impact on the environment. From Personal Financial Services, estimated savings from e-statement and double sided printing was RM1.4million for At the end of 2009, 71 percent of our new commercial banking customers had signed up for the e-statement option. We also worked with our customers especially in the forestry and oil palm industry in their journey towards compliance. We continued engaging with our customers to help them meet our policy standards particularly The Forest Land and Forest Products Sector Policy. HSBC was also elected onto the Roundtable of Sustainable Palm Oil (RSPO) executive board, which continues to move forward towards sustainable/certified palm Corporate Sustainability Report 2009 >> Working with our Customers 4
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9 Managing our Direct Impacts Electricity Consumption Summary 2009 SBC aims to reduce the direct environmental impacts arising from the operations of our business. In 2009, our operations covered 44 branches (conventional and Islamic) around the country as well as four major buildings around the Klang Valley. The Environmental Management System (EMS), a formal system for managing the environmental footprint of an organisation was set up at HSBC Bank Malaysia in May The Bank s EMS was established by adopting the principles of ISO 14001, an internationally recognised standard specifying the requirements necessary to implement EMS. Through this system energy, water, waste production and carbon dioxide emission will be monitored closely to ensure HSBC in Malaysia adheres to the environmental targets set by the HSBC Group. In 2009, the environmental targets were to reduce usage by two percent Note: HSBC Bank Malaysia 40 Branches HSBC Amanah Malaysia 4 Branches Water Consumption Summary (HSBC Bank Malaysia and HSBC Amanah Malaysia) Waste Management Summary (HSBC Bank Malaysia Head Office and Regions) HSBC Bank Malaysia HSBC Amanah Malaysia Both kwh (million) (thousand) m 3 EMS Dashboard Plan To achieve reduction of 2% on power consumption kwh savings: 455,836 kwh Carbon footprint savings: 244,784 Kg CO2 RM savings: RM185,981 Target reduction of 2% for Water Consumption and Waste Central South Head Office North East Kg (thousand) Corporate Sustainability Report 2009 >> Managing our Direct Impacts 6
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11 Community Investment SBC s commitment in this area focuses on two main pillars education and the environment. Fifty percent or our CS financial contribution goes towards education projects while 25 percent are directed towards environmental projects. The remaining 25 percent will go towards charitable donations to a selection of registered local charities and non-governmental organisations (NGO). HSBC Scholarship Award Scheme Project to Improve English in Rural Schools (PIERS) In 2009 we co-partnered with Hap Seng Group to extend this programme to Tawau, Sabah. A total of 16 rural schools were involved in this programme and benefitted more than 40 teachers. The programme aims to significantly raise the standard of English in clusters of 10 to15 rural primary schools within an approximately 25-kilometre radius by:- Raising English proficiency among teachers and school heads Improving teaching methodology of English Increasing English use outside the classroom through external activities Enhancing availability of English educational learning resources including multimedia and reading materials Improving school effectiveness through work with the head teachers on whole school issues, leadership and ICT programmes A sum of RM442,000 was awarded to 21 underprivileged recipients in External candidates 16 awards (RM316,000) Internal candidates (children of employees) 3 awards (RM126,000) Masters Programme 2 awards (RM60,000) Corporate Sustainability Report 2009 >> Community Investment 8
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13 Community Investment HSBC - KSNP Green Partnership HSBC Rainforest Carbon Project The second phase of the HSBC Kuala Selangor Green Partnership (KSNP) Programme was launched in 2009 continuing from the success of the first phase ( ). In recognition of this success, HSBC was presented with the Green Leadership Award under the Asia Responsible Entrepreneurship Awards Programme The second phase of the programme aims to develop KSNP as a centre to: Reach out to and sustain local communities Provide regional training Develop and implement habitat and species protection programmes Provide environmental awareness and education programmes Launched in October 2009, this five-year research project aims at understanding the role that tropical rainforests play in the carbon cycle and how their conservation and sustainable management can help to mitigate the impacts of climate change. This research project is managed by The Royal Society s South East Asia Rainforest Research Programme (SEARRP) at the Danum Valley Conservation Area in Sabah. HSBC Climate Partnership Launched in 2007, the HSBC Climate Partnership is a five-year commitment to tackle climate change with four leading global non-government organisation The Climate Group, Earthwatch, Smithsonian Tropical Research Institute and WWF. An important part of this partnership include engaging our employees in learning more about their role in improving the Bank s management of climate change in its business via the HSBC Climate Champions training programme by Earthwatch. In 2009, 10 employees from HSBC Bank Malaysia were trained to become Climate Champions. Corporate Sustainability Report 2009 >> Community Investment 10
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15 Others Charitable donations In 2009 we contributed over RM800,000 to about 100 charities/ NGOs. Volunteer work HSBC staff continued to actively contribute their time and efforts. Over 4000 staff volunteered close to 14,000 hours to do voluntary work. Corporate Sustainability Report 2009 >> Others 12
16 Group Communications (Malaysia) & Corporate Sustainability 2, Leboh Ampang, Kuala Lumpur, Malaysia. T (03) F (03)
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