Recently, Hang Seng Bank (00011) released the "2024 Environmental, Social and Governance Report", which comprehensively demonstrated its significant progress in promoting green transformation, inclusive finance and strict internal governance.

(Photo source: Hang Seng Bank 2024 ESG Report)

Founded in 1933, Hang Seng Bank is known as Hong Kong's leading local bank. It has been keeping pace with the times and providing high-quality and customer-oriented banking, investment and wealth management services to personal and commercial customers. It currently serves nearly 4 million customers.

In 2024, the bank continued to be committed to maintaining high standards of corporate governance. The governance framework spans the board of directors, management and employees, and can effectively monitor opportunities, risks and disclosures; and prioritizes the inclusion of climate risk monitoring in the risk management framework to ensure that climate-related opportunities and challenges are managed consistently.

In the report, Hang Seng Bank clearly stated that it will achieve net zero emissions in its business operations by 2030 or earlier, and strive to help customers transition to a low-carbon economy. To this end, the bank has launched a series of transition measures and green initiatives, including:

● Hang Seng Bank continues to help HSBC Group achieve its ambition to provide and facilitate US$750 billion to US$1 trillion in sustainable development financing and investment by the end of 2030.

● A series of measures were launched in 2024 to expand sustainable development financing capabilities, provide diversified green and sustainable development financing solutions for companies of different natures, enhance corporate awareness of sustainable development through the "Hang Seng Carbon Management Academy", and provide faster and more affordable green equipment financing assessment services for small and medium-sized enterprises.

● Hang Seng Index Company launched eight new ESG and sustainable development indexes in 2024.

● As of 2024, Hang Seng Index Company provides 29 ESG-related indexes, covering a series of diversified sustainable development investment strategies in the Hong Kong and Mainland markets, including but not limited to ESG integration, carbon reduction strategies, best-in-class and green economy theme investments.

● All offices and branches are ISO 14001 certified. The bank has also developed specific guidelines for green procurement and waste management.

● Solar panels have been installed in the Mongkok Office Building, generating approximately 59,000 kWh of renewable energy in the past 12 months, reducing carbon emissions by 23 tonnes in 2024. Solar panels have also been installed in the Head Office Building recently.

● The Bank purchased a total of 13,742,200 kWh of renewable energy from a local power company in 2024, equivalent to approximately 58% of the Bank's total annual electricity consumption.

● Introduced ECO Corner in the canteens of the Head Office Building and Mongkok Office Building.

In terms of social responsibility, Hang Seng Bank promotes inclusion and resilience by enabling employees to master future skills, enhance customer experience through inclusive finance, contribute to social welfare and build shared values.

● Continue to create an inclusive work environment to promote diversity. The Bank's business in Hong Kong: 52% of senior managers at level 3 or above in the global level structure are women; 57% of employees are women.

● In 2024, the bank provided comprehensive training courses with diverse themes for its staff in Hong Kong, with a total of 245,773 hours of learning.

● During the year, the bank took the following measures to enhance employee benefits: Upgraded medical plans to increase the claim limits for outpatient, surgical-related, ward and meal, and additional additional medical protection benefits; enhanced personal/care time arrangements; and extended maternity leave.

● The bank launched the "Future Ecopreneur Programme" in collaboration with Hong Kong Science and Technology Parks Corporation and Wofoo Social Enterprises to cultivate local students and young graduates to become leaders in sustainable development and green technology, helping Hong Kong achieve the vision of the Hong Kong Climate Action Blueprint 2050.

● Launched the ESG for ALL online sustainable development index learning course to impart sustainable development knowledge and enhance colleagues' ability to integrate ESG considerations into operations.

● Established partnerships, including promoting the innovation ecosystem, taking collaborative measures to support green technology innovation business models, applying green technology in sustainable practices, and collaborating with local universities to support the development of innovation and technology start-ups.

The report said that data privacy and cybersecurity remain the top priorities of the bank's risk management. The bank strictly complies with regulatory requirements in various markets, protecting and valuing entrusted information. At the same time, the bank maintains a proactive stance by investing in cybersecurity infrastructure while maintaining industry-leading standards. The bank's cybersecurity framework includes advanced incident detection, streamlined incident response, secure development practices and vulnerability remediation, while strengthening defense against complex threats. These initiatives reflect the bank's determination to protect the interests of stakeholders in an increasingly complex digital environment.

In addition, Hang Seng Bank has won many industry honors for its ESG practices in 2024, such as MSCI's "AA" rating and Sustainalytics low risk rating. This not only proves the bank's leading position in the ESG field, but also further enhances the market's confidence in its sustainable development strategy.

In the future, Hang Seng Bank will focus on creating meaningful changes through innovation and sustainable development.

Author: Qinger