HSBC''s website and Corporate Social Responsibility Report 2003 provide detailed information on the various initiatives undertaken by HSBC which relate to the principles of the Global Compact. The CSR Report, the fourth in the series, has been aptly renamed “HSBC and Society” and provides detailed information on environmental policies and procedures, employee safety and security, labour relations issues, human rights and a range of community involvements. HSBC’s dedication to environmental policies is exhibited in its lending and investing policies, which avoid involvement in projects and businesses where impacts on the environment have not be addressed properly. HSBC has also set up an environmental management system to devise more efficient and reduced use of natural resources. The Group has established the Investing in Nature programme in partnership with WWF, Earth-Watch and Botanic Gardens Conservation International. Page seven of the report details HSBC’s policies to maintain and improve employee relations and working conditions through constant feedback, grievance reporting and extensive two-way communication. The Group Standards Manual, a document for use by staff, details the code of ethics followed strictly at HSBC.

HSBC has recently established a CSR Committee of the Group’s Main Board. It will help HSBC to ensure that one of the prime commitments of the company’s strategic plan for 2004 - 2008 is that “morality is as important as earnings growth.” Other topics in the report of relevance to the implementation of the Global Compact include corporate governance, environmental protection, occupational health and safety, supply chain management, consumer protection, engagement with stakeholders and community initiatives.

The section called “Diversity: a report on progress” on page 46 of the CSR Report directly relates to Principle 6 laid down by the Global Compact. HSBC is setting out expressly to achieve a diversity among senior managers that reflects the composition of a Group that operates in 79 countries and territories. And it has policies in place to inspire employees to learn about their colleagues elsewhere and their cultures.

HSBC became the first bank in the UK to offer shariah-compliant products for Muslim customers. The Group?s training video on diversity won the gold award for the best employee relations video at the New York Film Festival and diversity features prominently in company policies and communications. These policies are helping to ensure that HSBC is able to create a talent pool that represents all employees, their origins, backgrounds and cultures.

HSBC’s Investing in Nature programme is helping to restore three of the world’s major rivers - the Yangtze, the Amazon and the Rio Grande. Good progress is being made in re-linking lakes that had become separated, promoting sustainable fishing and reducing water pollution.

HSBC’s CSR aims for 2004 include understanding and sharing best practice in the field of diversity, improving workplace health and safety and building on the progress being made in fresh water supply and conservation.