Sustainability is becoming important for business as global awareness of CO2 emissions and resource consumption increases. Investors are becoming increasingly interested in the carbon management of the firms they invest in. This includes green buildings, clean transport, energy efficiency, recycling, sustainable manufacturing, rejuvenation of land and renewables to name a few.
Sustainable practices can also save money by driving energy and cost efficiencies, waste reduction and innovation. To fund these initiatives, banks and investors are looking to green financing: the raising and investment of capital into projects, products and companies that contribute to a more sustainable, low-carbon and climate-resilient economy.
HSBC has committed to being a leader in this transition. Having played an important role in establishing the Green Bond market, we have encouraged diversification among issuers and investors by initiating new structures and progressive dialogue. Award-winning research on climate change from our Climate Centre of Excellence is helping enhance the broader understanding of this market.
An active member of the Green Bond Principles Executive Committee, we issued our inaugural EUR500m Green Bond in 2015. We have supplemented further green bonds with loans, revolving credit and other general financing products to help UK and global customers achieve their sustainability goals.
HSBC's sustainable finance offering helps businesses meet their environmental goals with a suite of green products. HSBC has aligned its Green Loan offering to the Loan Market Association's Green Loan Principles2, which aim to create market standards and guidelines, providing a consistent methodology for use across the green loan market, in addition we have developed hsbc-eligible-criteria-for-green-activities (PDF, 1.04MB) with the support of Sustainalytics.
The HSBC Green Lending proposition is available for:
Green Term Loans
HSBC has a broad Green Loan offering available to Large Corporates, Mid-Market Enterprises and SMEs looking to secure funding for sustainable activities. Green Loan is available for a minimum loan of £300,000, enabling businesses to access finance to support their sustainability projects.
Green Revolving Credit Facilities (RCFs)
The industry first Green RCF enables companies to access funds when required, depending on sustainable cash flow needs, and is available for a minimum loan value of £1,000,000.
Green Asset Finance
The Green Asset Finance product facilitates the financing of green assets through hire purchase, finance and operating lease.