HSBC 2012 Annual Report Download - page 332

HSBC HOLDINGS PLC
Report of the Directors: Corporate Governance (continued)
Board committees > Corporate Sustainability Committee
330
policy is available at www.hsbc.com/investor-
relations/governance/corporate-governance-
codes. The benefits of diversity continue to
influence succession planning and are key
criteria in the instructions to external search
consultants.
• Director training and development. The
Committee reviewed and monitored the training
and continuous professional development of
Directors and senior management.
• Time commitment and independence of non-
executive Directors. The Committee made
recommendations to the Board, having assessed
the independence of, and time required from, the
non-executive Directors.
• Terms of reference and Committee
effectiveness. The Committee undertook a
review of its terms of reference and its own
effectiveness including the Committee’s role in
assessing the independence of the non-executive
Directors as required following changes made to
The Hong Kong Corporate Governance Code.
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
Meetings
attended
Meetings
eligible
to attend
Members
L M L Cha (Chairman)1 .......... 3 4
N R N Murthy2 ........................ 4 4
G V I Davis3 ............................ 3 4
Lord May4 ............................... 4 4
Dame Mary Marsh4 ................. 4 4
Meetings held in 2012 ........... 4
1 Appointed Chairman on 1 January 2013.
2 Retired as a Director and Chairman of the Committee on
31 December 2012.
3 Retired as a co-opted non-director member of the
Committee on 29 November 2012.
4 Co-opted non-director member of the Committee.
J W J Hughes-Hallett has been a member of the
Committee since 1 January 2013.
Sustainability governance
The Corporate Sustainability Committee is
responsible for advising the Board, committees of
the Board and executive management on corporate
sustainability policies across the Group including
environmental, social and ethical issues.
Corporate Sustainability exists as a global
function. Senior executives are charged with
implementing sustainable business practice in all
major regions through inclusion in the HSBC Global
Standards Manuals; and, through induction and
developmental training. Local teams are in charge
of embedding corporate sustainability strategies
within banking activities.
HSBC reports on its progress in developing
and implementing its sustainability strategy
annually in the HSBC Sustainability Report, which
is independently verified and prepared using the
Global Reporting Initiative framework. The HSBC
Sustainability Report 2012 will be issued on 24 May
2013 and will be available at www.hsbc.com/
sustainability.
Corporate sustainability
At HSBC, we understand that the success of our
business is closely connected to the environmental,
social and economic landscape. 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. The way
we do business is as important as what we do: our
responsibilities to our customers, employees and
shareholders as well as to the countries and
communities in which we operate go far wider
than simply being profitable.
Our continuing financial success depends,
in part, on our ability to identify and address
environmental, social and ethical 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,