The world’s local bank has pledged to provide $100 billion in sustainable financing and investment in the next six years
HSBC is one of many major brands to publicise its commitment to a more sustainable future, releasing a plan to provide $100 billion in sustainability by 2025.
Part of this plan involves the launch of its new range of green finance products, designed to support UK businesses with their environmental and sustainability goals.
The range includes a variety of products designed to make greener business management more accessible and rewarding
The banking giant’s range includes an innovative Green Loan, with a minimum amount of £300,000. It also offers a Green Revolving Credit Facility (RCF), which it claims to be an industry first. The RCF will enable companies to access funds when they need them depending on sustainable cash flow requirements. The Green RCF is available for a minimum value of a £1 million.
That’s not all that HSBC is offering, however. The bank has also announced a new Green Hire Purchase, Lease and Asset Loan as part of their green finance products. This is designed to facilitate the financing of green assets.
$100 billion roughly equates to £76 billion – enough to make a significant difference to sustainable financing and investment – encouraging more UK businesses to put green measures into practice.
This isn’t the first time HSBC has put its commitment to environmental protection into practice
According to the global banking brand, it has already successfully provided green loans worth £600 million to UK business in little more than half a year. This was part of a pilot project for their new range launched in November 2018 for larger corporate customers.
HSBC UK Commercial Banking Head of Sustainable Finance, Rob King, described the bank’s new green finance services as a product of consumer demand.
King comments: “We have seen strong demand from businesses since launching the Green Loan pilot last year so we are confident this suite of green finance products will support our customers to meet their sustainability agendas. Our customers are asking for more green finance products to support their specific ambitions.”
King also explains how having access to green services can benefit UK businesses in the long run, saying: “Our offering allows our customers to showcase their green credentials to stakeholders by demonstrating that a portion of their funding is ring-fenced for genuine environmental and sustainability activities. Many stakeholders are now considering a company’s green credentials when making decisions about whether to work with, work for or invest in that company.”
More and more businesses are beginning to see the importance of going green
The environment is one of the key issues affecting our society right now, and because of this sustainability has become a pretty powerful factor for consumers seeking out the best organization for their needs.
Research shows that a whopping 90% of CEOs consider sustainability to be vital for business success. What’s more, 66% of global consumers are willing to spend more money on sustainable goods. When you focus this in on millennials, this number jumps to 73%.
Other brands, like HSBC, are publicising their commitment to the environment. Earlier this year, Best Buy announced its aim for a 75% reduction in emissions by 2030, and Waitrose has introduced new technology to significantly reduce the impact of their in-store fridges.
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