Insurance Overview

Not applicable. First Direct does not offer commercial lending services.

First Direct is a division of HSBC Bank plc., which is part of the HSBC Group. 

According to its website, HSBC Group aims “to lend and invest responsibly, avoiding projects where the potential for social and environmental damage outweighs the economic benefits.” As such, the group “exercises caution” when providing financial services to the following sectors:

• Chemicals
• Defence equipment
• Energy
• Mining and metals
• Freshwater infrastructure
• Forest land and forest products

HSBC Group also monitors its customers’ compliance levels and the scale of potential impacts. It has outlined detailed sustainability policies and utilizes the Equator Principles as a starting point for assessing whether to do business with the above sectors. The group states that “policies apply to all lending and other forms of financial assistance, primary debt and equity markets activities, project finance and advisory work.”

HSBC has specialised teams to respond to both central and regional lending needs and targets. Transactions are initially assessed against the requirements of the Equator Principles by its Project and Export Finance teams. The proposals are then submitted for review and approval by the credit risk teams. Regular reports on the management of sustainability risk are prepared for senior management, including quarterly reports for the Risk Management Meeting of the Group Management Board.

HSBC Group also monitors its customers’ compliance levels and the scale of potential impacts on an annual basis.

HSBC provides the following examples of its ethical lending policy in action in its 2012 Sustainability Report:

• In 2012, the Group declined two potential transactions which would have adversely affected World Heritage Sites
• HSBC was asked to provide financial support to a building project along the Mexican coast. After utilizing the sustainability risk framework, the Group discovered that it was adversely affecting protected mangrove swamps, and was therefore noncompliant with its policies. HSBC declined to be associated with the project.

HSBC’s sustainable risk policies “apply to all lending and other forms of financial assistance, primary debt and equity markets activities, project finance and advisory work.”

In 2012, HSBC signed up to the UN’s Principles for Sustainable Insurance, a global sustainability framework and initiative of the United Nations Environmental Programme Finance Initiative. Its aim is. Its aim is to help insurance companies manage their environmental, social and governance (ESG) challenges. The principles ensure that signatories embed ESG in decision-making and work together with clients, partners and governments to raise awareness of ESG issues. See page 3.

Not applicable. First Direct does not offer commercial lending or insurance services.

According to its Mining and Metals Sector Policy, HSBC has a restricted appetite for supporting individual operating sights where there are credible allegations of human rights violations.

HSBC’s Ethical and Environmental Code of Conduct for Suppliers of Goods and Services states that “HSBC expects suppliers to respect the human rights of their employees and to comply with all relevant legislation, regulations and directives in the countries and communities in which they operate.” Respect for human rights covers areas of forced labour, child labour, working hours, discrimination, labour unions, disciplinary practices, and work environment.

HSBC expects suppliers to have management processes in place to ensure compliance. HSBC may randomly review a supplier’s policies, procedures or any other document related to the HSBC Code of Conduct. In some cases, this may include an on-site audit.