CORPORATE SUSTAINABILITY REPORT Tomorrow Starts Today
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1 CORPORATE SUSTAINABILITY REPORT Tomorrow Starts Today Group Communications (Malaysia) & Corporate Sustainability 2, Leboh Ampang, Kuala Lumpur, Malaysia. T (03) F (03) Printed by Percetakan Lai Sdn Bhd, Kuala Lumpur, on Beyond Enhanced Value, a totally chlorine-free (TCF) paper with no added Optical Brightening Agents (OBA). Manufactured in Cartiere del Garda, Italy. Cartiere del Garda achieve Mill ISO Certified in year 1996.This paper is certified by the Forest Stewardship Council (FSC), meaning that the wood used to produce Beyond Enchanced Value comes from a forest that is well-managed according to strict environmental, social and economic standards. Issued by HSBC Bank Malaysia Berhad (Company No V) PP14912/01/2009(020407)
2 CEO S FOREWORD HSBC s Corporate Social Responsibility journey began even before it became a buzzword in the marketplace. In fact, Corporate Social Responsibility evolved to Corporate Responsibility and by 2007, the term Corporate Sustainability was adopted as a collective label to encompass the Bank s management of environmental impacts, sustainable financing, and philanthropic and community investments. Corporate Sustainability succinctly describes the management of our direct environmental footprint, sustainable risk and business opportunities as well as our community investment activities. As a major employer, lender and investor, we can make an important contribution to sustainability by providing financial solutions to environmental and social challenges while building a healthy business for the benefit of all our stakeholders. In this fourth edition of our Corporate Sustainability report, we hope you will be able to see that the Bank s vision to be the world s leading financial services company to be the best place to bank, the best place to work and ultimately making the world a better place to live in is not just a corporate but also a personal commitment. You and I make up HSBC. So let s continue to make our mark as a company that is committed to sustainable development. Irene M Dorner 2007 IN REVIEW the year HSBC Group launched the HSBC Climate Partnership, which commits US$100 million to fund four leading environmental organisations - The Climate Group, Earthwatch Institute, Smithsonian Tropical Research Institute (STRI) and WWF. Together with these charities, and thousands of our colleagues around the Group, HSBC aims to combat the threat of climate change by inspiring individuals, businesses and governments worldwide to act. the year HSBC was rated 4th in the 2007 Global Accountability ratings in terms of our responsible practices. the second year HSBC Malaysia organised the Malaysian Forest Dialogue a platform for discussion and sharing on sustainable forestry with multi-stakeholders in Malaysia.
3 HSBC IN THE COMMUNITY Every year, HSBC contributes directly to a selection of registered non-governmental organisations (NGOs) and local charities that are in need. We believe in sharing our success and understand that the Bank cannot operate in isolation from the community we operate in. We also extend our support through employee volunteers who spend their time and effort in various projects with the organisations that the Bank supports. community projects 148 number of organisations helped 104 number of volunteers 2122 HIGHLIGHTS 2007 HSBC Trianglethon 400 HSBC staff converged early one Sunday morning to walk a total of 12.5 km as part of the Bank s efforts to raise funds for 10 charity organisations. A total of RM650,000 was collected. Bank Negara Malaysia s School Adoption Programme - Buku Wang Saku The Bank Negara Malaysia (BNM) School Adoption Programme (SAP) was first launched in 1997, involving all financial institutions and life insurance companies in Malaysia. The objective of this programme is to educate students on financial literacy and management in order to develop consumers who can manage money and expenditure wisely. In support of this programme, HSBC distributed "Buku Wang Saku" to 101 schools throughout Malaysia with 25 branches adopting a total of 26 schools. volunteer hours 7820 amount raised / donated RM589,850 Children's Christmas Party It is the Bank's tradition to celebrate the different festivals with underprivileged children as part of our Corporate Sustainability (CS) initiatives. In keeping with this tradition, the Bank hosted a Children's Christmas Party for 8 charities where each organisation received a donation of RM3,000.
4 HSBC IN THE ENVIRONMENT Managing our direct impacts: HIGHLIGHTS 2007 paper: Decreased by 27 tonnes (485 tonnes in 2006, 458 tonnes in 2007) electricity (energy efficient lights, upgraded air-con chillers) Southeast Asia Rainforest Research Programme (SEARRP) in Danum Valley KSNP-HSBC Green Partnership Invest in the Young and the Future programme in Kota Kinabalu styrofoam cups (abolished) energy saving recycling bins water (save water campaign) RM100,000 was pledged to the Royal Society s South East Asian Rainforest Research Programme (SEARRP) based at the Danum Valley Field Centre in Sabah to help finance SEARRP s team of research assistants. They play a critical role in Danum by helping scientists with their work and are responsible for the centre s long-term climate and other environmental monitoring programmes. This three-year programme aims to develop a series of initiatives, including the upgrading of the Environmental Education Centre and to enhance and raise environmental education, awareness and conservation efforts at the Kuala Selangor Nature Park (KSNP). Some of the activities involve the support of the community and include planting mangrove saplings as part of the ecosystem enrichment programme. A number of HSBC staff volunteers have since been a part of this mangrove planting programme. A collaboration with WWF-Malaysia and Sabah Wetlands Conservation Society, Invest in the Young and the Future is a three-year project on environmental education targeting 10,000 children and youths with the production of 2 Environmental Education modules for students and teachers. Community participation is also key in this project and includes the involvement of HSBC staff in fundraising efforts for sustaining wetlands conservation. The environment is one of the two main focuses for the Group s Corporate Sustainability activities. We realise that to enjoy sustainable success, we need to operate in a sustainable environment. We continue to work with our partners and employees to reduce our environmental footprint.
5 HSBC IN EDUCATION HSBC s emphasis on education stems from the belief that it is the key to giving the community, especially the younger generation, opportunities in life. Focus is on school-going children, particularly the disadvantaged. We also believe that education is not only in the classroom but also through sports. Our support of youth development through sports (namely cricket and rugby) aims to allow the younger generation to take away positive values and strengths learnt while playing the game. HIGHLIGHTS 2007 HSBC Scholarship 2007 saw the introduction of the Master s degree scholarships in addition to the ongoing scholarships for undergraduates. Six postgraduates and 26 undergraduates were awarded HSBC Scholarships in Reading and Writing Project (RAW) Conducted by the Child Information, Learning and Development Centre (CHILD), RAW was established by a group of professors to help underprivileged primary school children improve their communication skills in English. With the support from HSBC, a total of 29 schools in 7 states across Malaysia will be able to improve their reading and writing skills through the HSBC-RAW project. Project to Improve English in Rural Schools (PIERS) PIERS is an initiative to raise the standards of English for teachers and children in rural areas. Aimed at English language teachers as well as Mathematics and Science teachers, it focuses on classroom delivery, the use of Information and Communications Technologies (ICT) and leadership in rurals schools. PIERS is managed by CfBT Education Malaysia, a part of the CfBT Education Trust group.
6 HSBC IN THE ARTS HIGHLIGHTS 2007 HSBC in Malaysia is also involved in the development and conservation of the local culture, heritage and arts industry under its HSBC in the Arts programme. Since the introduction of this programme, the Bank has partnered various organisations in their efforts to nurture Malaysian talents and conserve heritage. HSBC Classics Bursary The HSBC Classics Bursary was introduced to support young Malaysian musicians in their journey and efforts to develop their talent. Janelle Soong Sze Lok who is pursuing a specialist music course in Somerset, England was the recipient of the first HSBC Classics Bursary of RM20,000. Restoration of Suffolk House Suffolk House in Penang was finally restored with the involvement and support of various parties including the Penang State Government, the Penang Heritage Trust, HSBC Bank Malaysia and the community at large. A launch and an appreciation dinner was held to mark the successful restoration and fundraising efforts which at final count amounted to RM2.8 million. Suffolk House (before and after) HSBC Classics String Festival 2007 An annual classical music festival, HSBC Classics has made a name for itself as one of the foremost classical music festivals in the country with a growing base of fans. HSBC Classic 2007 featured a five-day string festival comprising concerts, workshops, master classes and even an exhibition, which provided a platform to nurture Malaysian talents.
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8 FOCUS FOR 2008 Going forward, HSBC will continue to maintain the long-term growth for a sustainable business with the right balance between the environment, society and the economy to ensure long-term success. Our plans for 2008 will ensure that we: ENERGY reduce by 7% - invest in programmes that tackle the single largest environmental challenge this century Climate Change - continue to minimise the indirect impact of our lending based on sector guidelines - manage our direct impacts and work toward achieving the Group s targets set out for in terms of :- CARBON DIOXIDE reduce by 5% WATER CONSUMPTION reduce by 7% WASTE GENERATION reduce by 8% We have the time and knowledge to act, but only if we act internationally, strongly and urgently. Lord Nicholas Stern: Special Adviser to the Chairman on Economic Development and Climate Change
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