HSBC’s Reconciliation Action Plan (RAP) Innovate 2024-2026 is the banking giant’s latest initiative aimed at advancing reconciliation by promoting economic participation and cultural preservation for Aboriginal and Torres Strait Islander peoples.
But as banks have historically played a significant role in bankrolling colonisation and its associated impacts on Indigenous communities, all banks should aim to address these past injustices while promoting economic independence and cultural preservation for First Nations people.
Is HSBC’s RAP a well-rounded and genuine commitment to reconciliation or does it fall short of delivering the transformative change needed for real progress?
ReconciliACTION Score
Reconciliation Action Plan Pros:
- Quarterly internal reports to staff and senior leaders on RAP progress.
- Establishment of the HSBC Indigenous Advisory Group to guide decision-making.
- Commitment to developing an Indigenous employment strategy.
- Engagement with AIEF for mentoring and alumni support, CEO mentoring and other employment programs.
- Specific employment initiatives include summer work placements and the AIEF Tertiary Internship Scholarships.
- Target to increase representation of Aboriginal and Torres Strait Islander suppliers in the supply chain.
- Commitment to increase HSBC’s spend with First Nations businesses annually.
- Financial support to the Yurungai Learning Centre and the Australian Indigenous Education Foundation (AIEF).
- Establishment of partnerships such as with Barnardos and KPMG Indigenous Services.
- Commitment to programs that support educational and employment opportunities for Aboriginal and Torres Strait Islander youth through the global Future Skills strategy since 2016.
Reconciliation Action Plan Cons:
- Limited data on the specific progress of previous RAP commitments due to a lack of a robust tracking system.
- Only three employees currently identify as Aboriginal and/or Torres Strait Islander, indicating low representation. The RAP commits to developing strategies to improve this but lacks specific targets.
- Self-identification has been utilised in the past to inflate reporting figures and facilitate Indigenous identity fraud.
- The document does not specify the current spend amount on First Nations businesses, making it difficult to measure progress.
- The Supplier Diversity program is still in development, with no clear metrics for success yet established.
- The RAP relies heavily on existing partnerships and does not detail new financial commitments or expansions of community programs.
- Limited information on the direct impact of community support initiatives in terms of measurable outcomes.
- Commitment to increase spend with First Nations businesses annually and develop a Supplier Diversity program, but lacks specific current spend data.
- Significant partnerships with AIEF and Barnardos and ongoing support since 2012 but the RAP does not detail new financial commitments or measurable impact outcomes.
Conclusion
The current low representation of Indigenous employees and the developing stage of the Supplier Diversity program raise questions about the plan’s robustness and potential impact.
In addition, there’s little transparency and set targets so for HSBC to truly advance reconciliation, it must address these gaps with clear metrics and sustained action, ensuring that its commitments lead to meaningful and measurable outcomes.
| Who | Reconciliation Claim | Barayamal Score | Public Score |
|---|---|---|---|
| RAP Our vision for reconciliation is one where the cultures, knowledge and histories of Indigenous Australians are accessible, understood and appreciated by all Australians. | 2/5 | 2.4/5 | |
| ASIC | RAP Ensuring that Aboriginal and Torres Strait Islander peoples can access the financial system and experience positive financial outcomes. | 3/5 | |
| Reflections Holiday Park | RAP Reflections will develop opportunities for cultural expression and celebration while delivering social, cultural and economic outcomes for Aboriginal communities. | 1/5 | |
| KPMG | RAP Guided by our purpose to ‘Inspire Confidence, Empower Change’, we are committed to placing truth-telling, self-determination and cultural safety at the centre of our approach. | 2/5 | 1/5 |
| Whitehaven Coal | RAP Promises Indigenous employment, economic opportunities and cultural engagement initiatives. | 1/5 | |
| IMB Bank | RAP Promises to foster meaningful relationships and create opportunities for Aboriginal and Torres Strait Islander communities | 1/5 | |
| Expedia Group | RAP Promises to foster reconciliation by enhancing relationships, respect and opportunities through targeted initiatives and measurable outcomes. | 1/5 | |
| BlackRock | RAP Commits to reconciliation through transparency, employment and community support. | 1/5 | |
| NSW Office of Sport | RAP Commits to advancing reconciliation through sport. | 1/5 | |
| HSBC | RAP Aims for Indigenous banking inclusion and developing supplier diversity. | 1/5 |