19 November 2019

Now is the time to invest in sustainable initiatives with green loans

Canadian companies are investing in initiatives that advance environmental and sustainability goals, according to a recent HSBC survey.

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The HSBC Navigator survey of 9,100 global business leaders solicited the input of 200 leading Canadian businesses for their perspectives on sustainability, revealing that 95% of Canadian businesses are feeling the pressure to be more sustainable.1

In fact, two-thirds of surveyed Canadian companies believe they have a significant role to play in delivering the United Nations Sustainable Development Goals, with a particular tilt towards the goals of climate action, good health and well-being, and responsible consumption and production.

“Top of mind environmental issues relevant to Canadian businesses include energy use, carbon emissions and energy-efficiency products,” says Linda Seymour, Head of Commercial Banking, HSBC Bank Canada. “Businesses told us that they are motivated to invest in sustainable initiatives to grow sales, attract and retain the best people and improve the employer brand, improve transparency and traceability and to gain a competitive advantage.”

Canadian companies that participated in the HSBC Navigator Survey understand these bottom-line business imperatives to invest in sustainability. Over the next five years, they intend to invest in technology initiatives to monitor their supply chain for greater visibility and traceability (30%), invest in initiatives to reduce waste generation (28%) and invest in technology, innovation and infrastructure to improve sustainable production (27%).2

“As companies look to become more sustainable, they are investing in green projects and activities. We can continue to help them reach their aspirations through our Green Finance products, which support businesses as they pursue sustainable and environmentally focused activities,” says Seymour.

Those investments will require capital, and HSBC is stepping up to help businesses make the shift to a more sustainable future. As part of HSBC Group’s commitment to being a leader in financing, managing and shaping the transition to a low-carbon world, the bank has pledged to provide USD100 billion to sustainable financing and investments by 2025.

In Canada, HSBC Bank Canada has launched a green finance proposition, HSBC Green Loans, that meets the requirements of the Loan Market Association’s Green Loan Principles. The principles provide a consistent methodology across the green loan market and enable companies to align their financing with their sustainability strategy.

Starting at CAD500,000, HSBC Green Loans fund eligible sustainability projects in areas ranging from clean transportation and renewable energy to circular economy products, production technologies and processes. Commercial mortgages and leasing are also eligible for an HSBC Green Loan.

“We have seen strong demand from businesses in the past few years for products that are aligned with their sustainability goals, so we are confident this suite of green finance products will support them,” says Seymour. “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.”

Eligible activities include:

  • Renewable energy, including storage and smart grids;
  • Pollution prevention and control, including reduction of air emissions and greenhouse gas control;
  • Clean transportation;
  • Climate change adaptation;
  • Sustainable water and wastewater management;
  • Sustainable management of living and natural resources and land use;
  • Waste prevention, reduction, recycling; waste to energy; products from waste.

Please contact your Relationship Manager to learn how an HSBC Green Loan can help you grow your business and contribute to a greener and more sustainable future.

1. HSBC Bank Canada, Navigator: Now, next and how for business (Canada), 2019. Page 5.

2. HSBC Bank Canada, Navigator: Now, next and how for business (Canada), 2019. Page 5.

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