HSBC to support UK businesses with green finance offerings

One day after the Government launched its Green Finance Strategy, banking giant HSBC has launched a new range of green finance services aimed at helping businesses of all sizes strengthen sustainability initiatives.

HSBC to support UK businesses with green finance offerings

HSBC has pledged to provide $100bn in sustainable financing by 2025. Image: HSBC

HSBC has launched a range of new loans and a Green Revolving Credit Facility (RCF) that are available for small to medium enterprises (SME) through to large corporates.

The Green Loans services have been launched following a trial last year and have been extended to SMEs wanting to secure loans for sustainability initiatives. The minimum green loan starts at £300,000 and HSBC UK has already provided green loans totalling £600m as part of the pilot.

HSBC UK’s head of commercial banking, Amanda Murphy, said: “With the Government committing the UK to reach net-zero carbon emissions by 2050, sustainability is increasingly important for companies of all sizes.

“We can now support their aspirations through our comprehensive Green lending proposition, which supports businesses as they pursue sustainable and environmentally-focused activities.”

The Green RCF enables companies to access funds when required, for a minimum value of £1m, depending on cash flow needs for sustainability projects. A dedicated HSBC Green Framework can be used to manage cash flow needs.

Finally, a green hire purchase, lease and asset loan product is available to finance green assets to be hired or loaned.

Green growth

More broadly, HSBC has pledged to provide $100bn in sustainable financing by 2025, as well as launching a $1bn green bond portfolio.

As part of a partnership with HSBC, US-based retail giant Walmart has developed a green finance initiative that rewards suppliers for setting, meeting or exceeding ambitious sustainability aims.

Called the Sustainable Supply Chain Finance Programme (SSCF), the scheme will align the sustainability performance of suppliers with their ability to apply for preferential financing packages.

Firms which are able to demonstrate good progress on reducing their emissions under Walmart’s Project Gigaton initiative, which is striving to mitigate one billion metric tonnes of greenhouse gas (GHG) emissions across the supply chain by 2030, will be given access to the more funding sources. Walmart notes that 90% of its total emissions come from the supply chain.

Earlier this week, the UK Government unveiled its highly anticipated Green Finance Strategy, outlining how the finance sector and better climate disclosure from corporates can drive progress towards wider action on climate change and the push towards net-zero emissions.

Matt Mace

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