HSBC 2011 Annual Report Download - page 241

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Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
experience of the current Directors. The
Committee considered the re-election of
Directors at the Annual General Meeting and on
the recommendation of the Committee, the
Board has decided that all Directors should be
subject to re-election by shareholders in 2012.
• Gender diversity. The Committee reviewed
Lord Davies of Abersoch’s report ‘Women on
Boards’ and amendments to the UK Corporate
Governance Code. The benefits of diversity
continue to influence succession planning and
are key criteria in the instructions to external
search consultants.
• Terms of reference and Committee
effectiveness. The Committee undertook a
review of its terms of reference and amendments
were made to make explicit reference to the
need to have regard to the benefits of diversity
when identifying suitable candidates for
appointment to the Board. The effectiveness of
the Committee was reviewed as part of the
Board’s performance evaluation.
Before recommending an appointment to the
Board, the Committee evaluates the balance of skills,
knowledge and experience of the Board and, in light
of this, and taking into account the needs of the
Group’s businesses, identifies the role and
capabilities required for a particular appointment.
Candidates are considered on merit against these
criteria. Care is taken to ensure that appointees
have enough time to devote to us. Prospective
Directors are asked to identify any significant other
commitments and confirm they have sufficient time
to discharge what is expected of them.
Corporate Sustainability Committee
Members Meetings attended
N R N Murthy (Chairman) 4
L M L Cha1 3
V H C Cheng2 1
G V I Davis3 4
Lord May3 3
Dame Mary Marsh3 4
Meetings held in 2011 4
1 Appointed a member on 3 May 2011. Eligible to attend
3 meetings.
2 Retired as a Director on 27 May 2011. Eligible to attend
2 meetings.
3 Non-Director members of the Committee.
Sustainability governance
The Corporate Sustainability Committee is
responsible for overseeing the Group’s Corporate
Sustainability policies (principally environmental,
social and ethical matters) and for advising the
Board, committees of the Board and executive
management on such matters.
HSBC has a Corporate Sustainability
department within Group Head Office and in each
of our major regions and countries of operation.
At an operational level, implementation of our
sustainability policies is managed primarily by
Group Corporate Sustainability, Group Human
Resources and Global Risk.
HSBC reports on progress in developing and
implementing our sustainability strategy annually
in the HSBC Sustainability Report, which is
independently verified and prepared using the Global
Reporting Initiative. PricewaterhouseCoopers
verified the Group’s commitment to carbon
neutrality and adherence to the Equator Principles.
The HSBC Sustainability Report 2011 will be issued
on 25 May 2012 and will be available at
www.hsbc.com/sustainability.
Corporate sustainability
At HSBC, we recognise that environmental, social
and economic issues can affect the Group’s long-
term success as a business. For us, corporate
sustainability means achieving sustainable profit
growth so that we can continue to reward
shareholders and employees, build long-lasting
relationships with customers and suppliers, pay taxes
and duties in those countries where we operate, and
invest in communities for future growth.
Our continuing financial success depends, in
part, on our ability to identify and address certain
factors which present risks or opportunities for the
business. These can affect our reputation, drive
employee engagement, help manage the risks of
lending, leverage savings through eco-efficiency and
secure new revenue streams. They generally fall into
one or more of the four broad areas discussed below.
Business finance
We aim to build long-term customer relationships
around the world through the provision of a
consistent and high-quality service and customer
experience. We use the benefits of our scale,
financial strength, geographical reach and strong
brand value to achieve this.
We aim to take advantage of the opportunities
and manage the risks presented by emerging global
trends by developing sustainable business models to
address them. We understand that the world is
changing; in 2011 the world’s population was
estimated to have passed seven billion people,
compared to approximately three billion just