RSPO Annual Communication of Progress 1. Profile

Name of organization: HSBC Bank and Indonesia Membership type: Ordinary Report prepared by : Chong Wei Kwang Email: weikwangchong@.com.my Report submitted by : Chong Wei Kwang Email: [email protected] Reporting Period : August 2006 to July 2007 Date of Report : 23JULY2007

2. Details of Progress

Please provide a brief summary of progress achieved during this reporting period. The following items may be useful to include in your progress report. Please submit your report based on the following headings. The Code of Conduct provides the key guiding reference on what is expected of RSPO Members, their responsibilities and thus, content of Annual Communication of Progress reporting. Reporting with specific reference to each Member’s service/trade/sectoral interest is expected.

A. Current efforts /progress in producing, procuring, utilizing and/or promoting sustainable palm oil HSBC Bank – Malaysia 1. We have encouraged our customers who are involved in palm oil production to join RSPO and commit to the RSPO Principles and Criterias. 2. We require our Relationship Managers to engage with our clients and have good understanding of the client’s environment policies and practices.

HSBC Bank – Indonesia 1. Our due diligence consists of asking plantation companies/mills to provide a list of existing environment policies in writing. 2. They are asked to advise about their involvement in RSPO and if they are not members their plans in this regard - we have introduced many companies to WWF and the RSPO liaison office. 3. We have prepared a checklist using RSPO principles & criteria and clients are asked to provide a mapping. This is combined with a site visit to look at issues like land clearance, usage of fertilizers, community issues/relationships etc 4. We have good contacts with NGOs and a database on controversies/allegations - here at times an independent consultant is used to verify customer claims.

1 B. Implementation of projects/initiatives that promote sustainable palm oil (including supporting activities like sponsorship) HSBC Bank - Malaysia 1. HSBC Malaysia supported the Sumatran Orangutan Society (SOS) by contributing USD10,000 towards their ongoing rehabilitation of orangutans in Sumatra. The funds were used for training, raising public awareness on the plight of the orangutans, and stakeholder engagement.

2. The Bank also contributed GBP2,500 to PhD candidate Alexandra Morel's research entitled, "Carbon Land-Use, Life-Cycle Analysis of Malaysian Palm Oil" conducted at the Danum Valley Research Centre through the Oxford University Centre for the Environment. Her research will explore the carbon implcations of forest conversion to oil palm plantation in Sabah and .

3. HSBC also donated some funds to the Sepilok Rehabilitation Centre via the Unilever for The Sepilok Orangutan Appeal UK.

4. To further promote sustainability in Malaysia, the Bank participated as sponsor in the National Conference on Sustainability Malaysia organised by MENGO to discuss issues pertinent to sustainability in Malaysia. The sponsorship also includes the sponsorship of 5 indigenous participants.

5. The Bank is also supporting The Royal Society in its South East Asia Rainforest Research Programme (SEARRP) based at the Danum Valley Field Research Centre in Sabah, with the aim to support research programmes and train young scientists at the research centre.

C. Significant economic, social or environmental problems encountered in production, procurement and/or use of sustainable palm oil and efforts made to mitigate or resolve them

D. Outlook/summary of planned activities to promote sustainable palm oil production, promotion and/or use in the next reporting period as well as action to address social or environmental problems encountered (under part C, if relevant).

2 E. Recent publications of environmental / social / sustainability reports or annual reports relating to the objectives and tasks of RSPO

F. Recognition and awards for excellence in promoting sustainable palm oil

G. Suggestions on how the RSPO can play an active role in enhancing your organization’s sustainability performance, particularly in relation to promoting sustainable palm oil HSBC Bank – Indonesia a. Better communication of principles & criteria in Indonesia - awareness levels are still low b. Involvement of small stakeholders c. Involvement of local banks - again awareness is low and their compliance criteria are very flexible d. Development of implementation tools/booklets that can be used easily

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