HSBC Climate Confidence Index 2007 HSBC Financed a Deal to Provide 1,800 Low-Emission Buses to Serve 4.5 Million Passengers a Day in Santiago, Chile

HSBC Climate Confidence Index 2007 HSBC financed a deal to provide 1,800 low-emission buses to serve 4.5 million passengers a day in Santiago, Chile. HSBC Climate Partnership 1 Foreword 2 Executive Summary 4 Creating a Consumer Index 6 HSBC Climate Confidence Index 2007 8 Concern

Contents 10 Confidence 14 Commitment 16 Optimism 18 Implications 20 Contact information Cover with WWF and supported by HSBC, local communities use Working eco-fishing practices, which increase their income and reduce pollution on River in China. the Yangtze Sustainable fishing on the Purus near Sena Madureira in River, Brazil, supported by HSBC and its WWF. environmental partner, Sustainable fishing on the Purus near Sena Madureira in River, Brazil, supported by HSBC and its WWF. environmental partner, Foreword

The HSBC Climate Confidence set targets to reduce the amount that everyone feels he or she and others adopting such Index 2007 is our first survey of energy and water HSBC can make a difference in programmes is what the HSBC of public attitudes to climate uses, and the waste and carbon tackling this most critical of issues. Climate Confidence Index change in nine of the world’s dioxide we produce. Under Engaging people – seeks to provide. The findings major markets. our Global Environmental governments and businesses, as present a few surprises and Financial institutions like Efficiency Programme, we are well as individuals – in much food for thought. The HSBC have an important part to investing US$90 million over combating the causes and levels of commitment and play in the transition to a low- the next five years to help us effects of climate change is the optimism, particularly in carbon economy. HSBC’s achieve these targets. In aim of a new, US$100 million developing economies, provide carbon finance strategy aims to addition, HSBC became carbon environmental partnership great encouragement. support businesses that are neutral from October 2005. launched in May 2007. The For HSBC and for society at developing cleaner, We were the world’s first major HSBC Climate Partnership large, the challenge of climate commercially viable bank and the first FTSE 100 unites us with four of the change is one we are only just technologies such as wind, company to do so. world's most respected beginning to address. We need solar, biofuels and landfill gas Such indicators – especially environmental organisations – to find ways of reducing our capture. As a result, low-carbon carbon dioxide – are the hard The Climate Group, Earthwatch impact on the environment and and renewables projects are an measures of performance in the Institute, the Smithsonian of involving people at every increasingly important part of world’s fight against climate Tropical Research Institute and level. Instruments that allow our portfolio. change. But as we start to WWF. Over the next five years, us to chart our progress and Like most major international address underlying causes and we will work together in some take the necessary steps will Stephen Green companies, we measure and develop solutions, it is clear that of the world’s great cities to be vital. Group Chairman report publicly on a range of we need a new, ‘softer’ set of influence policy and practice, We do not pretend that this HSBC Holdings plc indicators, enabling us to measures that chart our progress and to engage HSBC’s survey provides all the answers, July 2007 manage the environmental in engaging the most crucial employees, customers and the but we hope it makes a useful impact of our operations. Like element of all: people. Across wider community. contribution to promoting action many businesses, we have also the world, we need to ensure Research that can guide us on climate change.

HSBC Climate Confidence Index 2007 1 Executive Summary

The HSBC Climate Most striking is the contrast confident with their personal first, time second and money and 6% for non-governmental between developed and interpretation of climate last – is consistent in every organisations (NGOs). Only Confidence Index developing economies. The science, comfortable with one of the nine economies 33% think that governments 2007 shows a world conventional picture, of uncertainty about the future, surveyed. currently play that role. of polarised attitudes committed developed economies and suspicious of the motives People have a high Will all these actions be and reluctant developing ones, of both governments and assessment of the commitments enough? Again, the contrast is to climate change is a myth. If that picture holds companies. While a minority, they are already making, and striking between developing and and to our response at government level, the this is a growing constituency not just in the developing developed economies. The opposite is true for the people. that any climate-related economies. Across all nine proportion of people agreeing to the issue. Climate Across the nine economies we initiative needs to recognise. economies, few people say they that ‘we will stop climate change may be a surveyed, it is in the developing Feeding this rejection is a are doing nothing; about four in change’ varies from 45% in economies that people show the lack of popular consensus about 10 acknowledge that they could India and 39% in China, to only global issue, but the greatest concern, commitment what accepting the problem do more; but already a further 6% in the UK and 5% reactions to it vary and optimism, and in the means. Across the nine four in 10 people say they are in France. developed economies that economies we surveyed, only a doing as much as they can. This pessimistic view gives strongly. people show the greatest third of people say that ‘if we Other research suggests that the an opportunity, and even a indifference, reluctance and all act now we can help stop judgement of ‘as much as they mandate, to both governments fatalism. climate change for very little can’ may be driven both by a and companies. Governments ‘Green rejection’ – a rejection cost or disruption.’ In almost all sense of having no spare are clearly being asked to take of the problem, of solutions to economies, slightly more people capacity, and by lack of a leadership role though, in it, and of the institutions say that ‘we should make a big awareness of what else they developed economies, they need proposing them – is a growing change to all of our lifestyles could do. to overcome considerable issue in the developed today to reduce climate change.’ By comparison, neither suspicion in order to do so. economies. This may represent Most people do declare governments nor companies are Companies are held less a natural and temporary stage of themselves prepared to make seen to be doing what is needed accountable, but have a clear disillusionment while people are these changes: 58% say they today. It is to governments that opportunity to contribute, and asked to work hard at are prepared to make changes people would like to push the to benefit by being seen to do something with no visible to their lifestyle, 45% are responsibility: 68% of people so – if they can respond result. However, there are signs prepared to spend extra time, think that governments should effectively to the green rejecters that the rejection is deeper than and 28% are prepared to spend play the leading role in and consumer priorities. that. At the core are a strong- extra money to help reduce responding to climate change, minded, generally younger, climate change. The ranking of compared with 16% for group of people, who are these commitments – lifestyle individuals, 10% for companies

2 HSBC Climate Confidence Index 2007 Attitudes to climate change are complex and cannot be summed up simply in one sentence. Our index measures attitudes on four core scales to provide a profile of people’s thinking on climate change.

Commitment personally to contribute today. Optimism People’s assessment of their that we will solve commitment is moderately the problem. high across the nine Despite the high Concern economies surveyed, with commitment, belief that we about the issue. Confidence relatively little variation will stop climate change is Climate change is the in what is being around the world despite low in most of the world, number one concern in the done about it today. different circumstances. but with strong regional developing economies Overall confidence is low. Brazil and India (both 47%) variations. Optimism is surveyed. It is the number China (46%) and Hong show the highest highest in India (45%) and three concern in Europe Kong SAR (38%) have the commitment, with the UK China (39%), and lowest in and the joint fourth with highest confidence, with (19%) and US (23%) the France (5%) and the UK another issue in the US. the UK (5%), Germany (6%) lowest. More people say (6%). Mexico and Brazil, India (60%), Mexico (59%) and France (7%) the lowest. they are prepared to make with similar scores to India and Brazil (58%) have the In Germany, the UK and changes to their lifestyle to on the first three index highest levels of concern China, more than a third of help reduce climate change measures, are much less about climate change, with people think we should not (58%), than are prepared to optimistic on this outcome the lowest being the UK be individually trying to fix spend extra time (45%) or measure (24% and 26% (22%) and Germany (26%). the problem. extra money (28%). respectively).

HSBC Climate Confidence Index 2007 3 Creating a Consumer Index

The HSBC Climate Confidence Index is Consumer responses to climate change are governed as much by their different perceptions of the designed to understand and measure problems as their commitment to particular solutions. For this reason, there is no single number that can usefully measure ‘climate confidence’. Our index measures consumer attitudes on four core scales which, consumers’ attitudes and response to in combination, analyse thinking on climate change. Each scale is represented by a statement, with the climate change across the world index being measured in terms of strength of agreement with that statement. The four scales and and over time. This first report is based on statements are: research conducted with 9,000 consumers across nine economies in April 2007. Concern ‘Climate change and how we respond Through these four statements, Economies researched to it are among the biggest issues I we can find out: a. how people see the problem Brazil worry about today.’ of climate change; and b. what confidence they have in China Confidence the means used to tackle the France problem. ‘The people and organisations who Both of these perspectives vary Germany should be doing something about climate between people and economies. Hong Kong SAR* Our report, therefore, focuses change are doing what is needed.’ not only on the levels of each India score, but on the different Commitment profiles that people have across Mexico the four scores. UK ‘I am personally making a significant USA effort to help reduce climate change *Subsequently referred to through how I live my life today.’ as Hong Kong. Optimism ‘I believe we will stop climate change.’

4 HSBC Climate Confidence Index 2007 The characteristics of this The research and index have Research methodology responses to this question. the sample for each economy. research are: been designed in collaboration This section explains the Since the field methodology Variations by income are ■ Its global scale, based on a with Lippincott – a brand research methodology that used is internet-based, we will small, with no systemic sample of 9,000 people across consulting firm with a may be helpful in interpreting have achieved a more pattern. In the two countries nine economies in four specialism in analysing the findings. representative sample of the where we have a nationally continents. consumer attitudes to For the purposes of this population in developed representative sample, we find ■ Its potential as a tracking sustainability – building on research, we defined climate economies than in responses climbing slightly survey, monitoring trends in previous research and analysis change for our respondents as developing economies where with income in the US and these economies over time, for The Climate Group, the ‘a change in the earth’s our sample is biased towards dipping slightly with income in for which this report is the Carbon Trust and the World climate through human more affluent individuals. the UK. Within the mass baseline. Business Council for activity affecting the Across the different affluent sample, we find ■ The scope of its subject, from Sustainable Development. The composition of the economies, the sample for responses climbing slightly perception of the issue to fieldwork was completed by atmosphere, not just natural this survey is as follows: with income in China and confidence and involvement Lightspeed in April 2007. variations that may happen to dipping slightly with income in ■ UK, USA: nationally in the response, with the climate.’ India. Most importantly, representative sufficient depth to guide Our index scores measure however, these differences are ■ France, Germany, Mexico, future action as well as the strength of agreement small compared with the Brazil: higher socio- with each of the index differences between monitor progress. economic groups ■ The creation of a multi- statements on a seven-point economies. ■ India, China and Hong Kong: dimensional index to scale, from 1 (strongly Within the scope of the urban ‘mass affluent’ communicate and interpret disagree) to 7 (strongly agree). populations sampled, we are the findings. In this report, scores are A potential concern from therefore confident that the expressed as percentages, this could be that the views results presented here are valid which represent the from the developed and can usefully be compared proportion of people who economies might not be between economies. However, scored 6 or 7 on this scale. comparable to those from since the lower-income groups We also asked an open developing economies in the developing economies question: ‘Do you have because the income segments have not been surveyed, we anything to add with regards in the two categories are very cannot make any statements to this topic?’ The unprompted different. To test this effect, we about them, nor can our comments quoted throughout have looked at how responses findings make any this report are taken from vary by income level within assumptions about them.

HSBC Climate Confidence Index 2007 5 HSBC Climate Confidence Index 2007

Key findings While there are striking Figure 1 differences between the Concern Confidence Commitment Optimism economies, it is not just a case ■ Concern about climate of one being further ahead or change is high, especially in Climate change The people and I am personally I believe we will behind on some linear scale developing economies, and and how we organisations making a stop climate of engagement with the issue. respond to it who should be significant effort change. so is people’s individual The four elements of the are among the doing some- to help reduce commitment to address it. biggest issues thing about climate change HSBC Climate Confidence I worry about climate change through how Index reveal different ways ■ Confidence in what is being today. are doing what I live my life that people, or countries, is needed. today. done today, however, is are engaged. Across the generally low, with China nine economies surveyed, France and Hong Kong being 37% 7% 30% 5% we see four distinct profiles exceptions. Low optimism Sceptical on the index. UK reflects this lack of 22% 5% 19% 6% pessimists confidence: most people do not ‘believe we will Germany 26% 6% 25% 11% stop climate change’. Sceptical ■ Attitudes differ far more USA 32% 13% 23% 18% optimists between economies than they do between different Mexico 59% 14% 43% 24% ages, incomes or gender within each. Committed Brazil 58% 14% 47% 26% concerned

India 60% 19% 47% 45%

Percentages represent China 47% 46% 44% 39% people scoring 6-7 on a Committed 1-7 scale of agreement confident with each of the four Hong Kong 46% 38% 37% 30% index statements. Fewer 1 in 10 1 in 4 1 in 3 Half of than 1 in people people people all people 10 agrees agrees agrees agrees agree

6 HSBC Climate Confidence Index 2007 1Sceptical pessimists 2 Sceptical optimists 3 Committed concerned 4 Committed confident Sceptical pessimists are Sceptical optimists show similar The committed concerned are The committed confident are moderately concerned about moderate levels of concern and the most engaged showing, by high scorers across the index. climate change, but have no individual commitment. What far, the highest levels of They are concerned and confidence that the people and sets them apart is their concern. They have only limited committed, but what sets them organisations who should be relatively greater (but still confidence in what is being apart is their confidence that doing something about it today limited) confidence that what done today, but among the people and organisations are are doing what is needed. As a should be being done today is highest individual commitment. already doing what is needed. result, even though they may be being done, and associated The degree of optimism This confidence translates into somewhat committed personally, greater (but still limited) resulting from this contrasting relatively high optimism that we they do not believe we will stop optimism that we will stop mix of limited confidence and will stop climate change. The climate change. The economies climate change. This is the high commitment varies. The economies showing this profile showing this overall profile are profile shown by the US (New economies showing this profile are China and Hong Kong. those in Western Europe: York, Miami and San Francisco are Mexico, Brazil and India, Typical comments from the France, the UK and Germany. show this profile, with Chicago with the latter having the committed confident are: ‘I A typical sceptical pessimist’s closer to the sceptical greatest optimism. think if we try it together all comment is: ‘I feel governments pessimists.) Comments from A typical comment from the over the world, we can do it’ and large companies are not respondents suggest that the committed concerned is: ‘I and ‘All people will join in to doing enough as they are only greater confidence and strongly believe that helping to improve the global environment.’ concerned with themselves and optimism shown by this group change the environment is first their profits.’ Some comments come not from a greater belief and foremost in the hands of are also sceptical about climate in what people are doing, but each individual.’ change itself. from a lesser belief in the problem itself – and therefore a lower expectation of what needs to be done. Typical sceptical optimists’ comments are: ‘Personally, I think this issue has been overdone’ and ‘I think the earth will readjust itself.’

HSBC Climate Confidence Index 2007 7 Concern

Key findings Our index statement for concern terrorism, children’s future, Figure 2 is: ‘Climate change and how we global poverty, planning for later ‘Climate change and how we respond to it are among the biggest issues I worry about today’ ■ Climate change is the respond to it are among the retirement, healthcare, pandemic number one concern in the biggest issues I worry about disease and natural disasters, Average = 43% developing economies today.’ climate change was clearly the We saw a large range of dominant issue in Brazil, Mexico surveyed. It is the number France three concern in Europe agreement, from India where and Hong Kong. In China, it was UK and the joint fourth with 60% of respondents strongly also number one, though closely another issue in the US. agreed (scored 6 or 7 on a 1-7 followed by children’s future. In Germany scale of agreement), to the UK India, it took second place to USA ■ where only 22% of respondents terrorism. India (60%), Mexico (59%) Mexico and Brazil (58%) have the strongly agreed. The striking In the developed economies, Brazil highest levels of concern finding is the difference between climate change is the number about climate change, with high concern in developing three concern, behind terrorism India economies and much lower and children’s future, in the three the UK (22%) and Germany China (26%) the lowest. concern in developed economies. European economies tested. Only Could this concern be driven in the US did climate change Hong Kong ■ People see climate change by a survey bias? Are respondents rank lower – behind terrorism, 0 10 20 30 40 50 60 % as a concern for the future, in some economies simply more healthcare, planning for later not an immediate risk. Yet generous in their scoring? Partly retirement, and equal to Proportion of people scoring 6-7 on a it is generally the young – to check for this effect, we also children's future. 1-7 scale of agreement who would be most asked people to rank their affected – who are least concern about a list of world The post-green generation? groups to be most concerned. groups. Concern among the 50+ concerned. issues. The ranking adjusts any The concern that people have is Only in the US is concern age group is stronger in Europe difference in scoring, since not immediate. Overall, 72% of strongest in the younger age than in the US; among the 18-24 everybody names a top issue. people agree that ‘climate change groups. In the developing age group, it is only half as In the ranking, climate change will affect our children, if not economies, it rises slightly with strong in Europe as in the US. emerged as the number one issue ourselves’, while fewer than age and, in Europe, it rises Within the younger groups in – i.e. it was ranked first by more 60% agree that ‘climate change strongly. The lowest concern in Europe are a growing number of people than any other issue – in is likely to affect me and others Europe – the scores that bring people who are confident about all developing economies but where I live.’ In terms of who down the European average their personal interpretation of one, and in no developed will be most affected, it would compared with the developing climate science, comfortable with economies. Compared with be logical for younger age world – is in the youngest age uncertainty about the future, and

8 HSBC Climate Confidence Index 2007 Figure 3 Figure 4 Ranking of concern about the following list of world issues Concern about climate change by age group

% respondents scoring 6-7 on a 1-7 scale of agreement Total USA France UK Germany MexicoBrazilChina India Hong Kong 70

Terrorism 60 Climate change Children’s 50 future Global poverty 40 Planning for later retirement 30 Healthcare 20 Pandemic Developing economies disease European economies Natural 10 disasters USA 0 02040020400204002040020400204002040020400204002040 18-24 25-34 35-49 50+ % respondents ranking as number 1 Biggest concern (if not climate change) Age group Climate change suspicious of the motives of both ■ ‘The science underlying on the climate thing to instil we are describing here is a more is coming from the younger governments and companies. climate change is manipulated fear in the population, thus fundamental rejection, by a vocal generation who has never bought Typical unprompted comments for political purposes and, as a using it to charge more taxes.’ minority, of the premise on those messages. from the 18-24 age group in the science student, I believe many which those communications and UK are: of the claims made about the The ‘green rejection’ that is offers are based. ■ ‘It has been proven that causes of climate change are increasingly visible is more than In Germany, where ‘green’ has [climate change] is natural and unfounded.’ ‘green fatigue’. Green fatigue been in the consumer mainstream is a change the Earth must go ■ ‘Carbon makes up only a describes people’s reaction to an for longest, the rejection is not through. We should stop fraction of the world’s excess of choice created by the coming from the older generation interfering with the natural atmosphere. It seems to me increasing clutter of green ‘fatigued’ by decades of green course of things.’ that the government is playing communications and offers. What messages they no longer buy; it

HSBC Climate Confidence Index 2007 9 Confidence

Key findings Our index statement for confi- respondents strongly agreed. climate change’ (41% on that we should not try to fix the dence is: ‘The people and organ- Across the economies average) and ‘If we all act now problem. In Germany, the UK isations who should be doing ■ Confidence in what is being surveyed, there are divergent we can help stop climate change and China, more than one third something about climate change done today is the lowest of views about what is needed. for very little cost or disruption’ of people chose one of these are doing what is needed.’ our four index scores in When asked ‘which best (35% on average). The former statements as best describing most of the economies Again, we saw a large range describes your view on how we led in the developed economies their view on climate change. surveyed. of scores, from China where should respond to climate and the two were fairly balanced Who are the people and 46% of respondents strongly change?’, most economies were in the developing economies. organisations who should be ■ China (46%) and Hong agreed (scored 6 or 7 on a fairly evenly split between ‘We More striking is the doing something? Across the Kong (38%) have the 1-7 scale of agreement), to should make a big change to all proportion of people who chose world, people place highest confidence, with the UK where only 5% of of our lifestyles today to reduce other statements to the effect responsibility squarely with the UK (5%), Germany (6%) and France (7%) the lowest. Figure 5 Figure 6 ‘The people and organisations who should be doing ‘Which best describes your view on how we should ■ The picture is complicated something about climate change are doing what is needed.’ respond to climate change?’ by huge differences of view about what should be Average = 18%

done. In Germany, the UK France Total and China, more than a France third of people think we UK UK individually should not try Germany Germany to fix the problem. USA USA Mexico ■ Responsibility is placed Mexico Brazil squarely with governments: Brazil 68% of people say India India governments should play China China the leading role in responding to climate Hong Kong Hong Kong change; only 33% think that 0 20 40 60 80 100 they are actually doing so. 0 10 20 30 40 50 % Proportion of people scoring 6-7 on a % respondents ranking as most important 1-7 scale of agreement

10 HSBC Climate Confidence Index 2007 governments: 68% of people say governments should play the leading role in responding to climate change. Only 33% think that they are doing so, with leadership currently taken by NGOs.

Figure 7 ‘Who do you think is currently, and should be, playing the leading role?’

Make a big change: Is currently doing Should be We should make a big change to all of our (All economies) (All economies) lifestyles today to reduce climate change Government/ Impact with a small change: regulators If we all act now, we can help stop climate change for very little cost or disruption Individuals Don’t try: It is not our role to try to interfere with the earth’s climate With HSBC’s support, the Companies/ Smithsonian Tropical Research The earth’s ability to self-regulate will businesses solve climate change Institute is conducting a field experiment on the quality and We should adapt to a changing climate, quantity of water flow in the not try to stop it from changing NGOs Panama Canal, one of the Scientists will find a technological solution world’s most important to climate change waterways for commerce. The problem of climate change is impossible 0 20406080020406080 for us to try to fix in our lifetime If climate change becomes a problem for % respondents ranking as number 1 me, I will just move somewhere else

HSBC Climate Confidence Index 2007 11 Paul’s Hill wind farm in Scotland was financed by HSBC and is an example of the projects the Group is supporting under its carbon finance strategy.

Fighting fatalism impossible for us to try to stop’. This attitude also reflects does another form of fatalism: Germany, the UK and China all This is mostly because of a doubt about the reality of the the view that the earth should show a fatalistic response to disbelief about humans’ role in worldwide effort that is needed: be left to adapt. In the UK, 18% climate change, with over a causing climate change, and ■ ‘Stopping climate change is of people said that the statement third of people choosing a therefore our role in preventing it. nonsense. We can’t persuade best describing their view was statement about not trying to fix Typical unprompted comments the developing countries to either ‘We should adapt to a the problem. But the specific from Germany are: reduce the emission of changing climate, not try to responses, and the attitudes that ■ ‘These are natural phenomena, hazardous substances now, stop it happening’ (11%), or appear to be behind them, are which are now being used to when we ourselves haven’t ‘The earth’s ability to self- different in the three. part us from our money. Man done anything about it for regulate will solve climate Germany shows the most won’t be able to stop it.’ decades. So we should change’ (7%). These attitudes pessimistic form of fatalism, ■ ‘There has always been prepare ourselves for the are summed up in the with most of the ‘don’t try’ climate change (e.g. ice age); consequences.’ unprompted comment: ‘I believe respondents saying that ‘the we will probably not be able In the UK, these attitudes also what will be will be.’ problem of climate change is to stop this.’ exist (9% of people), but so In China, responses were Figure 8 more evenly spread, but the ‘Which best describes your view on how we should respond to climate change?’ largest percentage (9%) was (Only ‘Don’t try’ options shown here) that ‘scientists will find a Germany UK China technological solution’. This It is not our role to try to interfere with the reflects a range of unprompted earth’s climate comments in China that The earth’s ability to self-regulate will express non-specific but solve climate change optimistic hope. We should adapt to a changing climate, not try to stop it What role for business? Scientists will find a Who should take the leading role technological solution to climate change in responding to climate change? The problem of climate In geographical terms, the change is impossible for us to try to stop global consensus is that the leading role lies with the If climate change becomes a problem developed, rather than for me, I will just move developing, economies. The 0 5 10 15 20 25 0 5 10 15 20 25 0 5 10 15 20 25 developed economies should % respondents ranking as most important 12 HSBC Climate Confidence Index 2007 Figure 9 Figure 10 ‘Businesses should play the leading role in responding to climate ‘Who do you think should be playing the leading role?’ change (compared with governments, individuals and NGOs)’ (all economies)

Average = 10% France Energy UK Car manufacturers Germany Airlines US Mexico Banks

Brazil Farmers India Builders China Retailers Hong Kong

0 5101520% 0 1020304050607080

Proportion of people scoring 6-7 on a % respondents ranking issue as number 1 1-7 scale of agreement play the lead (85% agree) and, play the leading role, and Europe, particularly the UK). of people give them the leading indeed, do so today (78% agree). developing economies, where Farmers are seen almost role. Builders can have an even In organisational terms, people only 5% say so. everywhere to be playing a greater influence on our energy give most responsibility to Within business, people leading role today, but should demand through building governments, with only 10% overwhelmingly associate not be doing so. construction and design – since saying that businesses should responsibility with energy As significant are the business buildings represent up to 30% play the leading role. While this companies (71%). Other major sectors that are not seen to have of world energy use – but only role for business is secondary to high-carbon sectors come a a leading role to play. Retailers 2% of people give them the governments everywhere, it distant second and third: car can have a huge influence on leading role. differs substantially between manufacturers (11% overall, led the choices that people make in developed economies, where by the US, Brazil and China) and their consumption which relate 15% say that businesses should airlines (7% overall, led by to climate change, but only 1%

HSBC Climate Confidence Index 2007 13 Commitment

Key findings Our index statement for doing as much as they can commitment is: ‘I am varies only between 33% (the ■ People’s assessment of personally making a significant US and Brazil) and 50% (India their commitment is effort to help reduce climate and Hong Kong) – a narrow moderately high across the change through how I live my band given the variety of Figure 11 nine economies surveyed. life today.’ lifestyles as well as attitudes, ‘Which of the following statements best Of the four index statements, Despite the very different and a high percentage given the reduce climate change?’ it is the one most closely circumstances in which people degree of scepticism that exists related to people’s live their lives, this is the index about the issue. People appear % score in which we saw least to define ‘as much as they individual circumstances, 100 yet it shows the least regional variation. However, a can’ according to their HSBC employees test sea water gap exists between developing circumstances, which raises the samples in Brazil’s Cananéia variation across the world. Estuary during an Earthwatch and developed economies, with question of what will motivate 80 research project. ■ Brazil and India (both the developing economies them to reassess. It is difficult 47%) show the highest between 37% and 47% in to accept that this 33%-50% of agreement (percentage of people are already doing ‘as commitment, with the UK 60 (19%) and the US (23%) respondents scoring 6 or 7 on a much as they can’; the the lowest. 1-7 scale of agreement), and the challenge is to help them to developed economies between discover how they can do more, 40 ■ More people say they are 19% and 30% in agreement. either through new choices prepared to make changes Across all the economies without significant cost, or surveyed, few people say they through new choices with to their lifestyle to help 20 reduce climate change do nothing, or do not know immediate benefits they value. (58%), than are prepared what to do, to help reduce What people say they are climate change. Four in 10 least prepared to do is to spend to spend extra time (45%) 0 or extra money (28%). people acknowledge that they money on the problem. In each All economies This result holds true in could do more, while a further of the nine economies we every one of the economies four in 10 say they are already surveyed, more people say they surveyed. doing as much as they can. are prepared to make changes to The consistency of these their lifestyle to help reduce numbers across the world is climate change (58%), than are remarkable. The percentage of prepared to spend extra time people saying they are already (45%) or extra money (28%).

14 HSBC Climate Confidence Index 2007 Figure 12 Figure 13 describe what you personally do to help ‘I am personally making a significant effort to help reduce ‘I am prepared to…’ climate change through how I live my life today’

Average = 35% 41% France ‘I do as much as I can’ UK Germany USA 42% Mexico ‘I do some things but could do more’ Brazil India 7% China ‘I know what I can do, but don’t do anything at the moment’ Hong Kong 9% 0 10 20 30 40 50 % 0 10 20 30 40 50 60 % ‘I don’t know what I can do to help reduce climate change’ Proportion of people scoring 6-7 on a 1-7 scale of agreement

HSBC Climate Confidence Index 2007 15 Optimism

Key findings Our index statement for ■ ‘Stopping climate change Figure 14 optimism is: ‘I believe we will starts from our homes first, ‘I believe we will stop climate change.’ ■ Belief that ‘we will stop stop climate change.’ then from our society, climate change’ is low in After analysing concern, followed by our companies confidence and commitment, and others.’ most of the world, but with Average = 23% will we succeed? The short ■ ‘If every person at home strong regional variations. France answer is ‘no’. Across the nine starts to create a pollution- UK ■ This belief is highest in economies surveyed, fewer than free atmosphere, that street India (45%) and China one in four people strongly will be clean and good. If Germany believes that we will stop every street is good, the city (39%), and lowest in France USA (5%) and the UK (6%). climate change. will be clean. If every city is India (45%) and China (39%) clean, the nation will be clean Mexico ■ Mexico and Brazil, whose are the most optimistic, but for without any pollution and, Brazil different reasons. India’s finally, if every nation is free scores are similar to India’s India optimism derives from the from pollution, the world will on the first three index China measures, are much less world’s highest concern and the be free from pollution. So it optimistic on this outcome world’s highest commitment, starts from a single person Hong Kong measure (24% and 26% compensating for a fairly critical contributing to this pollution- 0 10 20 30 40 50 % respectively). view of what is being done today. free atmosphere.’ Typical unprompted comments Proportion of people scoring 6-7 on a from India reaffirm individual China’s optimism also reflects 1-7 scale of agreement responsibility and commitment, high concern and commitment and the cumulative impact of but, in particular, reflects the individuals acting together: world’s highest confidence in ■ ‘Governments should play the mobilise everyone to take up ■ ‘It’s not the responsibility what is being done today. main role in finding a the cause.’ of government, business or Typical unprompted comments solution as they can pass ■ ‘To fight climate change, the environmental organisations from China speak much less relevant laws, which will be government should be the only…every individual has about individual responsibility much more effective than leader, and the big companies to act.’ and more about hope for what improving public awareness.’ and organisations will be ■ ‘In Indian households, every the government will achieve: ■ ‘The strength of the pioneers. People all over the individual can contribute ■ ‘Governments shall lead individual is always limited. I world should be the towards reducing climate people to stop climate hope that the government and followers.’ change.’ change.’ relevant departments can

16 HSBC Climate Confidence Index 2007 For the Chinese, governments At the least optimistic end of In the UK, there are similar The scores of Mexico and For Brazil, the strongest are not only the answer, but are the scale, for France (5%) and sentiments about government Brazil are similar to India’s on theme in unprompted comments already active. While people in the UK (6%) the critical issue and big business, but also a the first three index measures is about how progress depends all economies say it is driving the lack of optimism is greater level of denial that (though with somewhat lower not on Brazil but on the big governments that should be the low confidence score. human-induced climate change confidence), but are much less carbon dioxide emitters, playing the leading role, it is Typical unprompted comments is happening in the first place. optimistic on this outcome specifically the US and China, only in China (65%), together from France reflect a lack of The attitude is that if we did not measure (24% and 26% and their multinationals, and the with Hong Kong (62%), that confidence in the necessary start it, we are less likely to be respectively). So why do they belief that they are unlikely to people see governments already political will, and scepticism able to stop it. Typical have a less positive act sufficiently: doing this. This is not a about motivation in government unprompted comments from interpretation? ■ ‘The industrialised countries, specific view of their own and big business: the UK are: For Mexico, the strongest which should invest heavily, government; even more Chinese ■ ‘At the global level, there is ■ ‘Governments and large theme in unprompted comments will not do so to the agree that ‘governments around no political will for change; companies are not doing is about the need for more detriment of their financial the world are doing what is all the principal players in enough as they are only information, which features profit…check out the US and needed’ than that ‘the political life don’t give a concerned with themselves much more prominently than in nowadays also China.’ government of my country is damn about it.’ and their profits.’ other economies: ■ ‘Countries like the US and doing what is needed.’ ■ ‘The government and the fuel ■ ‘Most people cannot afford ■ ‘I would like more China should be subjected to lobby are in large measure to pay their everyday living information on the topic in sanctions until they align responsible for the bad habits expenses so I feel it is up schools.’ themselves with the requested of everyone.’ to the institutions who make ■ ‘There needs to be more standards.’ ■ ‘Political decisions and the billions from selling their information…and ideas on ■ ‘Climate change will not be pressure from large industry products to help reduce how lower income people can deterred because the leading make me think that we are packaging and waste, and help in other ways.’ countries will not make the being manipulated… provide fuel-efficient vehicles ■ ‘There should be more necessary changes at the rate Everything revolves around and services.’ campaigns to inform the they should be made.’ money.’ ■ ‘Climate change has been population.’ happening since creation. It is vastly over-hyped and a natural phenomenon.’ ■ ‘The evidence I have seen and read does not support the greenhouse effect.’

HSBC Climate Confidence Index 2007 17 Implications

The implications of the consumer attitudes Implications for accepting it from theirs. Implications for companies governments Governments will need to Based on this research, presented here are challenging for both Consumers are giving explain better that their real companies may seem to be less governments and companies. Governments governments a clear mandate motive is not to levy more or under the spotlight. The number and corporations are blamed for not doing for leadership in every one of higher taxes. They should aim of people saying that companies the economies surveyed. If for revenue-neutral tax should take the leading role is enough. However, when they do act, they governments are waiting for initiatives, which shift tax relatively small. It is highest in are blamed – at least in the developed consumer action first to ensure explicitly to another area France, but even that is only their regulatory interventions without increasing it overall. 18% compared with 63% saying economies – for cynically exaggerating the have popular legitimacy, then Governments in all economies that the government should take issue for financial gain, in levying more consumers are waiting for should be aware of the strength more of a leading role. government action first to of feeling voiced by people in However, the research indicates taxes by government and making more ensure their individual the developing economies. a desire for companies to do profits by companies. So what can interventions have sufficient Governments in developed more. In every economy except scale to be effective. Even in economies are the direct target the US and the UK, people say governments and companies learn from India, where belief in the of criticism. Governments in that companies should take this survey? collective power of individual developing economies are not more of a leading role than they actions is strongest and where so criticised as those in do today. there is least tendency to developed economies, but are The research makes two delegate to the government, none the less under pressure points for companies. The 59% of people think that the from their people to take the primary message for companies government should be playing local lead. is one of opportunity. They can the leading role, compared with help people to take action, given only 27% for individuals. their high level of commitment. The challenge for The challenge is that people are governments in the developed least ready to spend money on economies is to take up this helping to reduce climate mandate in a way that change, compared with other engenders trust. While people in actions. In terms of climate- developing economies are friendly choices that companies asking for information from offer to customers, the their governments, people in imperative is therefore either developed economies are not solutions with no additional cost

18 HSBC Climate Confidence Index 2007 to the customer, e.g. sustainable stakeholders in initiatives on practices and materials built climate change needs to target into business-as-usual, or its actions and messages carefully. solutions with a direct value beyond the benefit to the planet. The continuing growth of premium-priced organic food is an example of what can be achieved when there is a direct and immediate benefit to the consumer, as well as a longer- term sustainability benefit. The second message for companies is the need to communicate the constructive steps they are taking in sustainability without feeding the ‘green rejection’ group, especially in developed economies. In practice, this means understanding customers’ attitudes and priorities in a segmented way, and targeting different propositions and messages at different people. This is, of course, normal marketing practice, but it differs from a conventional corporate responsibility perspective. Given the polarisation of attitudes Low carbon transport such as the demonstrated by this survey, a bicycle needs to form a key part of the climate change solution, said multinational business trying to HSBC at the launch of the HSBC engage its customers and other Climate Partnership in May 2007.

HSBC Climate Confidence Index 2007 19 For more information, HSBC Climate Partnership Photography contact: Most of the photos in this report show projects under the HSBC Cover: Zhou Huaikuan/WWF-China Nhan Chiem Climate Partnership, a five-year, US$100 million programme to Inside front cover Senior Manager tackle the urgent threat of climate change worldwide involving Main picture: Edward Parker/ WWF/Canon Group Communications The Climate Group, Earthwatch Institute, Smithsonian Tropical Inset: Ito Cornelsen HSBC Holdings plc Research Institute and WWF. The partnership will work in some Page 11: Christian Ziegler 8 Canada Square of the world’s major cities to influence climate change policy Page 14: Brent Stirton/Getty Images/WWF London E14 5HQ and practice, and to engage HSBC’s global workforce, Page 20: Marcos Guerra/STRI United Kingdom customers and the wider community. Learn more at: www.hsbc.com/committochange

Smithsonian researchers measure a tree on Barro Colorado Island in Panama as part of a field experiment on climate change, supported by the HSBC Climate Partnership.

20 HSBC Climate Confidence Index 2007

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