Case study: HSBC and First Direct embrace the carbon reduction agenda
Banks are not known for taking the lead on sustainability, and for some the issue has taken a back seat during the recession, but HSBC Group has positioned itself as a leading voice on carbon reduction.
Direct–to–consumer brand First Direct has been working with The Carbon Trust since 2006. It earned the Carbon Trust Standard early this year after reducing its carbon emissions by 14%.
The Leeds–based bank has introduced simple steps to limit CO2 emissions. For example, a ‘nightwatchman’ programme automatically shuts down any office computer that is not logged on after 7pm each night. The bank has also installed solar panels that produce enough energy to heat an on–site créche.
Lisa Wood, until recently the head of brand communications at First Direct (she has now moved to HSBC’s premium ex–pat business in Jersey), says: ‘It started very organically for us. The whole carbon initiative started with the environment within which we people are working, so we did an energy audit of our buildings.
‘It became a marketing issue when we gained the Carbon Trust Standard. It has allowed us to get involved more.’
But she adds: ‘When it comes to taking financial products and making them green, we have to be very careful and not force–feed it. It has to be authentic and you can’t be seen to be getting on the bandwagon.’
In 2005, HSBC was the first major bank to declare itself carbon neutral. In August this year, it became the 100th company to achieve the Carbon Trust Standard.
It is now focusing on taking the message to it consumers by encouraging them to ‘switch off’ paper statements. It also backed its commitment to renewable technology by installing solar panels on its group HQ in London.
Aneta Tadeusiak, brand manager – green at HSBC, says: ‘ Sustainability has been an intrinsic part of the business for years, but only recently we have realised that this is of interest to our consumers.’
‘We need to translate CSR and bring it to life for our customers.’
Employee engagement
Of course, the carbon reduction message will not have the desired impact if the message does not filter down to the shop floor, so considerable time has been invested in staff involvement.
Wood says First Direct encourages staff to get involved through one–day community projects. The bank also organised a green travel plan, which encourages staff to travel to work in a more environmentally friendly way, along with shuttle buses to Leeds railway station and a car–sharing scheme.
As part of the HSBC Climate Partnership, it works with Earthwatch to develop a range of sustainability learning programmes for staff. These include the Climate Champion Programme, which involves an intensive, two–week field course on sustainability and climate change.
Tadeusiak says the branch network is vital for communicating the message on to customers. ‘We encourage staff to encourage customers,’ she says.
‘Our communications strategy focuses on the fact that even the smallest things can have an impact, and you will see even more of these snippets throughout our literature and communications.’
Ultimately, says Wood, the early move towards including sustainability in the group’s marketing has paid dividends.
‘Having these things to talk about with your consumers is critical,’ she says. ‘It is a conversation starter and consumers are much more likely to engage with it. We are looking at how we can use it as an acquisition tool. You will see something in 2010.’
