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CASE STUDY: HSBC

Relevant Principle: 2.1 Research Activities

Opportunity

Financial institutions need to understand the financial implications of climate change. Risks need to be managed and opportunities need to be transformed into commercial ventures. A key challenge for financial institutions is to leverage internal research activities in developing tailored financial solutions to meet clients’ needs across diverse sectors.

Action

HSBC invests in climate change research to support its own operations and those of its clients in the ‘climate business’ sector. To achieve this HSBC has established the Climate Change Centre of Excellence, which consists of specialists dedicated to conducting research on the scientific, regulatory and economic dimensions of climate change. This information is used internally to support investment decisions.

Impact

In 2009 the Centre published 30 reports on the likely risks and opportunities of climate change. Examples of the reports include:

  • Research into the value of the low carbon energy market by 2020, with a prediction that it will triple in value to US$2.2 trillion.
  • Research to assist clients incorporate climate-related issues into their investment and business decisions, by providing a comparative study of the vulnerability of the G20 nations to climate impacts up to 2020.