Report on the Case Study of HSBC Holdings

“Critically analyse the organisations which operate in hybrid mode. Effectively and efficiently develop
sustainable leadership initiatives to improve the operation management and enhance productivity and
performance with a focus on finance performance and people.”
1. A 15 min video or an audio presentation including a PPT of key points of the business report
(equivalent 1200 words)
2. A written business report regarding HSBC bank case study (2400 words)
Case Study for Business Report: HSBC
Adapted Pilot’s book (2015), the journal articles and Bloomberg reports
Sustainability in the Banking Community
In the banking sector, new standards and codes of conduct have been promoting corporate
accountability, the need for transparency, and the need for management of risks for
environment and society. The traditional approach of the banking sector to sustainability
needed to be adjusted, as financial statements alone did not present the whole picture of
the sustainability of the business. Under this type of review, potential environmental
liabilities, such as decommissioning costs that can create financial risks, can go undetected
unless disclosed by the borrower. This may then impair the borrower in repaying the loan.
Banks now look to new programs designed for environmental business. International
Finance Corporation—IFC in its “Banking on Sustainability” report defines sustainability as
‘ensuring long‐term business success while contributing toward economic and social
development, a healthy environment, and a stable society’.
Leadership and corporate governance in banking sector
The Financial Times and IFC launched the Annual FT/IFC Sustainable Finance Awards for
financial institutions that show leadership and dedication in integrating environmental,
social, and corporate governance into their business, which includes five categories:
Sustainable Bank, Investor, Investment, Technology in Sustainable Finance, and
Achievement in Inclusive Business.
HSBC
HSBC Holdings PLC is Europe's largest bank and has operations in more than 60 countries
employing about 237,000 staff. HSBC Holdings PLC ranks the 8th largest bank globally by
assets.
Largest banks globally as of December 2020, by assets (in trillion U.S. dollars)

(Statista 2020)
Financial performance
HSBC's Global Banking and Markets (GB&M) arm saw a 9% drop in adjusted 2019 profit
before tax to $5.35 billion (£4.1 billion) from $5.9 billion in 2018. However, HSBC's securities
services arm (HSS) finished 2019 with positive figures for adjusted revenue, assets under
custody (AUC), and assets under administration (AUA).
The last 18 months have been challenging for HSBC as it has faced a series of problems in its
core Asian markets that are responsible for the bulk of the bank's profits. HSBC's European
arm, meanwhile, lost $944 million in the nine months to September.
Business Performance
HSBC Holdings PLC has been working to assist global business to sustain and expand and it
considers growth and sustainability of one’s business start with the principles the business
works with and with the focus being on the customer. HSBC’s website resource
(www.globalconnections.hsbc.com) addresses risk management, supply chain, talent
management, sustainability, and many more topics. The HSBC article “Sustainability—a
Growth Strategy” quoted the Netafim, a company which utilises HSBC’s resource and then
grows 30 percent worldwide, as saying, “We have a different culture in each subsidiary. We
aim to understand their needs and limitations, and not force them to act in ways that are
not reasonable in their countries.”