Corporate Sustainability - HSBC Bangladesh

Corporate SustainabilityJanuary - June 2012

Climate Change“Water is perhaps most affected natural resources due to climate change andlack of useable water is a burning issue for world population. In 2010, nearly800 million people were without access to safe water, and 2.5 billion withoutaccess to basic sanitation. Hence, HSBC rolled out a five year long USD 100billion worth project – HSBC Water Programme.”HSBC believes that extreme weather events has a long-lasting adverseimpact on its customers and employees and is likely to disrupt businessoperations. Climate change presents a range of different types of riskbut it also has the potential to stimulate innovation and development asbusinesses adapt to a changing world.The programme – planned and carried out in partnership withEarthwatch, WaterAid and WWF - has officially been launched on 12June 2012 and is believed to make a difference in West-Africa and SoutheastAsia by tackling water risks in river basins; bringing safe water andimproved sanitation to over a million people; and raising awareness aboutthe global water challenge.2

Sustainable FinanceHSBC promotes sustainable finance bymeasuring environmental risk - definingactivities that could adversely impact thenatural environment (e.g. impacts onprotected areas or endangered species)and social risk - defining activities thosethat could adversely impact communities.HSBC have policies and guidance onsustainability risk, including sector policiessuch as chemicals, forest and freshwater.Its environment-friendly financing policyis also aligned with the Green Bankingguidelines circulated by the central bank ofBangladesh.For every lending proposal, HSBCassigns a SRR (Sustainability Risk Rating)based on customers commitment,capacity, track record for compliance andimpact of the sector/business on theenvironment and finally a composite ratingis assigned from the matrix. Lendingproposals not meeting the SRR does notqualify for financing.A variety of resources like StandardManuals and e-learning courses aredeveloped to help the employees becomemore aware and adept in handlingsustainability risk in business.HSBC Bangladesh has already startedfinancing renewable energy projects aswell as Effluent Treatment Plants (ETP) ofdifferent organisation.3

Community InvestmentHSBC in Bangladesh makes philanthropic donations to support localcommunity programmes. Many sponsorship programmes are alsoorganised to foster education, environment conservation and communityadvancement. Furthermore, HSBC also values local heritage and activelyengages itself to strengthen its bonding with culture and local values byorganising different events and activations.The bank aims to utilise 75% of its total Community Investmentexpenditure to Education and environment where around 50% is given onEducation and 25% on environment. Remaining amount is invested for thebetterment of the local community and includes health, culture, assistanceto people with impairments.HSBC believes that education and the environment are fundamentalbuilding blocks for the development of communities. These two alsohappens to be issues of universal concern around the world. Hence byfocusing on these two areas HSBC is channeling its efforts to thebesteffect.4

HSBC Young EntrepreneursChallenge 2012The HSBC Young Entrepreneurs Challenge isa regional business plan competition for,which aims to promote creativity and sharpenthe business knowledge of the undergraduatestudents . In the last 5 years, over 3750students participated in the Bangladesh roundof the competition.This year, the competition was launched inFebruary and the local finale was held on May2012. Having contested through multiplerounds of workshops and assessments, 6finalist teams presented their business ideas infront of an expert jury panel at the Bangladeshfinale. The winning teams are:Gold Winners: Fireflies for their idea ofproducing capsule shells from fish fin for thepharmaceuticals industry.Silver Winners: The Concept Crew for theiridea of producing bio-degradable packagingmaterial from agricultural waste and mushroomrootsBronze Winners: Foursight for their idea of'Deer farming' to provide venison meat forcuisine5

HSBC Prothom Alo LanguageCompetition 2012The HSBC Prothom Alo Bhasha Protijog(Language Competition) is an annualprogramme jointly organised by HSBC,Bangladesh and leading Bengali daily ' ProthomAlo'. The programme sees participation ofprimary, secondary and higher secondary levelstudents from different educational institutionsand aims to raise awareness about the properuse of Bengali language.This year, regional competitions were held inremote areas of the country in the span ofFebruary – April 2012 period which sawmassive participation from young enthusiasticstudents.Total regional competitions held: 9Student participation : 6,500Staff Volunteers: 52The national finale was held on May 2012 in theauditorium of Viqurunnesa Noon Girl’s Schoolwhere awards were given to the top scorers indifferent categories.56

Water: Beyond BlueMarking the World Environment Day2012, HSBC Bangladesh initiated‘Water: Beyond Blue’ - a week-longenvironmental awareness campaign - tofamiliarise students with the concept ofwater efficiency. The programmeincluded day-long sessions at 4 schoolsin the capital:Dhaka Residential Model School andCollegeRajuk Uttara Model High School andCollegeBanani BidyaniketanViquarunnesa Noon School andCollegeOver 1000 students from these schoolsparticipated in the environmenteducationalprogramme.Along with this, HSBC Water Project(HWP) was announced in Bangladeshin the presence of the Dr Khairul Islam- Country Representative of WaterAidin Bangladesh and Andrew Tilke -CEOof HSBC Bangladesh. In the next fiveyears,HSBC Water Programme will providesafe water to 0.25 million people andsanitation to 0.4 million people in thenorth-east and north-western regionsof Bangladesh .7

‘Butterflies of Bangladesh’Photography ExhibitionHSBC sponsored the photographyexhibition and book publication of four ofits enthusiastic, environment-loving staffmembers. Field research andphotography work done by these youngemployees was titled ‘Butterflies speciesof Bangladesh’ and were displayed in aweek-long exhibition at the Drik Gallery inthe capital city.The exhibition was formally inaugurated on15 April 2012 by Asaduzzaman Noor –Member of Parliament. Andrew Tilke –CEO of HSBC Bangladesh, and othereminent personalities were present on theoccasion.8

HSBC Kali O Kolom YoungPoet and Writers AwardHSBC Bangladesh, in partnership with theliterary magazine 'Kali O Kolom, initiated the‘HSBC Kali O Kalam Young Poets and WritersAward’. The award programme seeks torecognise young talents in the contemporaryliterary field and is given in four categories.This year, the awards giving ceremony of HSBCKali O Kolom Young Poet and Writer Awards2011 was held at the main auditorium ofBangladesh National Museum on April 7 2012.Finance Minister Abul Maal Abdul Muhith waspresent as chief guest at the prize givingceremony.The four young winners who received theawards are:Poetry: Subhasis Sinha - for ‘Howa NaHowa-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’59

‘Ekattorer Birjoddha’ bookpublication ceremonyHSBC Bangladesh and the Daily Prothom Alohave jointly published the first volume of thebook, ‘Ekattorer Birjoddha’ – which means‘War heroes from 1971’ - to commemorate thegreat contribution made by our valiant freedomfighters in the Liberation war of 1971.The book has been formally unveiled through aceremony held on 13 April 2012 - graced bythe presence of freedom fighters, dignitaries,intellectuals, eminent cultural activists andmedia personnel.Honourable Minister for Planning, Governmentof the People’s Republic of Bangladesh - AirVice Marshall (Retired) A K Khandker, BirUttam was the chief guest of the programmewhile the Governor of the Bangladesh Bank -Dr Atiur Rahman attended as the specialguest. The gracious presence of the freedomfighters from remote corners of the country hasmade this humble initiative a truly memorableone. The event ended with rendition of patrioticsongs by noted artists Alam Ara Minu, MItaHuq and Bappa Majumdar.510

Other CommunityInitiativesHSBC also invests in the community by joining upwith notable organisations to provideeducational support to students. In the first halfof 2012, educational support were given to:200 students in the TMSS run schools350 children in the SEID Trust120 children in Disabled Welfare SocietyProvide computer skill training to 60visually impaired students in BERDOFree vaccination for children is a regularhealth initiative taken by HSBC. In January2012, HSBC Bangladesh observedChittagong Hepatitis Day in the port citywhere free hepatitis-B vaccination wereprovided to 435 children.Along with this, HSBC in partnership withHASAB carried out an awarenesss buildingcampaign titled ‘JiC OIKKO’ which focuses onHIV/AIDS .Furthermore, on January 2012, employeesfrom HSBC Bangladesh participated in WinterCloth Distribution programme to provide warmblankets to poor street dwellers on the capitalcity. Another Winter Cloth Distributionprogramme was carried on the extremenorthern regions with the help of Prothom AloBandhusobha and Green WorldCommunications Limited.11

Footprint ManagementHSBC manages its direct environmentalimpacts by reducing energy and water use,waste and CO2 emissions. To achieve this,environmental performance is included inbusiness operations and sustainabilitymeasures are incorporated into internal decisionmaking. Some of the practices are:Setting reduction targets for its energy andwater use and waste and CO2 emissionsProviding circular was given to the employeesinstructing them on efficient use of naturalresources, electronic appliancesTo communicate with customers , digitalmarketing tools like ATM screenshots, Emailmessages, SMS are being used extensivelyrather than previous paper-basedcommunication. For example, from January –June 2012 period around 83,500 ElectronicDirect Mails (EDM) were given to customersinstead of printed letterSetting default duplex printing options in allPCsAdopting e-mail based internalcommunications based to reduce paperworkUsing energy saving bulbs in officepremisesInstalling solar energy systems at HSBCDhanmondi Branch and ATM, HSBCBusiness Development Office in AdamzeeExport processing Zone (EPZ)12

Diversity and InclusionHSBC is committed to building a culture where all employees are valued,respected and where their opinions count. HSBC Bangladesh aims to fosterdiversity by attracting the best people and efficiently utilise their creativityand 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, HSBCBangladesh recognised a day-long campaign marking the ‘InternationalWomen’s Day’ for the female employees. All female employees got aspecially designed greetings card and a token of appreciation. In theafternoon, a customised game show for female employees was held at theHSBC Head office and Management office in Bangladesh. The winners ofthe game show were awarded with gift baskets and a special cake was cutto celebrate the day. HSBC also observed the international Mother’s Dayby congratulating its female employees through internal communicationmedia.To promote a friendly working environment and fitness among itsemployees, HSBC Bangladesh organised an inter-departmental crickettournament called ‘HSBC Hexaside Cricket Tournament’ on early March2012.

Facts and FiguresThe graphical representation of the half yearly performance of CorporateSustainability in HSBC, Bangladesh in terms of CS expenditure pattern ,women empowerment and employee volunteering-hours can be found inthis section.Corporate Sustainability Expenditure Pattern in First halfEnvironment,6%Community,22%Sponsorship,54%Education,73%CommunityInvestment,46%Total number of Staff volunteers: 166Total volunteering hours dedicated by employees: 6109Male and female employee ratio in workforce: 4.5:1Maternity leave of 6 months appliedalong with maternity leave, HSBC offers flexible working hourarrangement, part-time working policy and home-working facility to itsfemale staff members14

Contact:The Hongkong and Shanghai Banking Corporation LimitedManagement Office:Level 4, Shanta Western Tower, 186 Bir Uttam MirShawkat Ali Road (Tejgaon-Gulshan Link Road),Tejgaon I/A, Dhaka 1208, BangladeshTell: 880 2 8878850-55 ext 7014A pdf version of this report is available athttp://www.hsbc.com.bd/1/2/cs