Palm oil:Responsible investment as a driver of sustainable productionJohn LaidlowHead of Sustainable BusinessGroup Corpora...
The world’s local bankFounded 18657,500 offices87 countries and territories300,000 staff95 million customers221,000 ...
Sustainability at HSBCDevelopment which meets the needs of the current generationwithout compromising the ability of futur...
HSBC’s framework    The 3 Ps
Policies     Forest      Land                                  Mining               Fresh       &               Chemicals ...
ProcessesAnalyse the customer’s potential impacts and ability tomanage them successfully  Sustainability Risk Rating - Imp...
Sustainability risk ratings                                             SRR - Impact                                  High...
Management information - 2010                         Approved Limits   Customers                            (USD m)      ...
PeopleSustainability Risk Managers in 27 countries and regions
Forest land & forest products policy         including palm oil
Forest land and forest products policy• 2004• Loans, advice, trade finance, capital markets• Environmental and social sust...
Palm oil guidance note•   RSPO producer certification started in 2008.•   Long-term benefits to whole supply chain.•   Pla...
Challenges•   Companies not making credible progress with RSPO:    •   No conversion of HCVF after 2004    •   No burning ...
More challenges                     Source: GreenpeaceSource: Greenpeace                                          Source: ...
Looking forward•   Recognise and support the benefits of palm oil•   Mitigate the negative impacts•   Make sustainable pal...
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Session 6-1-john-laidlow-responsible-investment-as-a-tool-to-guide-sustainable-production-1477

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Responsible investment and the palm oil industry

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Session 6-1-john-laidlow-responsible-investment-as-a-tool-to-guide-sustainable-production-1477

  1. 1. Palm oil:Responsible investment as a driver of sustainable productionJohn LaidlowHead of Sustainable BusinessGroup Corporate SustainabilityHSBC Holdings plc6 May 2011
  2. 2. The world’s local bankFounded 18657,500 offices87 countries and territories300,000 staff95 million customers221,000 shareholdersMarket capitalisation $191 billion2010 profit before tax $19 billion
  3. 3. Sustainability at HSBCDevelopment which meets the needs of the current generationwithout compromising the ability of future generations to meet theirown needs.HSBC’s view of sustainability:Financial stabilityCustomer relationshipsCommunities
  4. 4. HSBC’s framework The 3 Ps
  5. 5. Policies Forest Land Mining Fresh & Chemicals Energy & water Forest Metals Products
  6. 6. ProcessesAnalyse the customer’s potential impacts and ability tomanage them successfully Sustainability Risk Rating - Impact Low Scale of impact Medium High Sustainability Risk Rating - Customer Leader Commitment Compliant Capacity Near-Compliant Track Record Non-Compliant
  7. 7. Sustainability risk ratings SRR - Impact High Medium Low No Risk Non-Compliant Near-Compliant SRR -Customer Compliant Leader Not Applicable
  8. 8. Management information - 2010 Approved Limits Customers (USD m) Total 580,222 42,968 Leader 22,092 1,066 Compliant 543,826 40,519 Near-Compliant 14,181 1,301 Non-Compliant 123 82
  9. 9. PeopleSustainability Risk Managers in 27 countries and regions
  10. 10. Forest land & forest products policy including palm oil
  11. 11. Forest land and forest products policy• 2004• Loans, advice, trade finance, capital markets• Environmental and social sustainability• Certification• Engagement – 5 years• Plantations • Conversion since 2004 unless no impact on HCVF • No burning • Support RSPO, encouraging customers to join.
  12. 12. Palm oil guidance note• RSPO producer certification started in 2008.• Long-term benefits to whole supply chain.• Plantations and mills• Social conflict, biodiversity, climate change and food• Preference for customers to making credible progress with RSPO certification. • Obtained certification or have a credible and time-bound plan. • Amended conversion cut-off date of 2007
  13. 13. Challenges• Companies not making credible progress with RSPO: • No conversion of HCVF after 2004 • No burning • No social conflict re FPIC and rights to area • Approach to peat where >1m depth and 150 ha in area.• Different stakeholders – eg smallholders• Supply chain• “RSPO is not perfect”• Climate change• Asset management
  14. 14. More challenges Source: GreenpeaceSource: Greenpeace Source: REM
  15. 15. Looking forward• Recognise and support the benefits of palm oil• Mitigate the negative impacts• Make sustainable palm oil the norm• Supply chain• Multi-stakeholder approach is complex but necessary• A sustainable future is good for business• Responsible investment can drive sustainable production• Quicker where more financial institutions involved

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