Canada is embracing green trade financing and investment options as it looks to recover from the global pandemic. The new funding streams will help to boost non-hydrocarbon revenues and help rebuild the economy in a sustainable way.
The new values are creating a new mode of business as the region navigates the largest transformation of our time. HSBC is at the forefront and is supporting businesses, entrepreneurs and communities that champion values and actions in the pursuit of sustainable prosperity as we build back better.
Green trade financing is emerging as an eco-friendly instrument, which is helping lay the groundwork for the development of sustainable products and services while driving corporate ESG agendas forward.
With green trade and financing sweeping across the world, Canadian governments at all levels and corporations are nimbly positioning themselves for the big switch. They are also aware that voters, investors, customers, business partners and other stakeholders are expecting on-the-ground changes.
HSBC has worked to support the working capital requirement of our clients that fulfill the Green Loan Principles and measurably contribute towards an ESG agenda.
The GLP model closely follows the Green Bond Principles that promotes integrity in the Green Bond market and has the backing of major financial institutions such as HSBC.
The GLP has four key tenets that companies must adhere to ensure that loan is used for sustainable purposes1. The four pillars are:
- Use of proceeds
- Process for project evaluation and its selection
- Management of proceeds
- Visibility over information on the project
HSBC’s own green propositions are built around the GLP and other market standard principals to ensure that the business classified as green meets these market benchmarks as a minimum requirement.
Where market benchmarks are unavailable, HSBC has constructed bespoke principals built on GLP for consistency and the broader UN Sustainability Development Goals, a globally agreed framework to help protect the planet, end poverty, and ensure peace and prosperity.