Products and Solutions
We are committed to supporting our 1.5 million clients all over the world to make the transition toward net zero. The path to net zero will look different for different customers and industries. From renewable energy to supply chains, we have the dedicated knowledge and suite of sustainable products to help you achieve your environmental and business ambitions.
Sustainability Linked Loans
Sustainability Linked Loans (SLLs) are aimed at supporting the borrower’s transition to a low-carbon economy through encouraging achievement of borrower’s sustainability goals. SLLs should comply with the five core pillars of the LMA’s Sustainability Linked Loan Principles (SLLPs).
Green Equipment Financing
Green equipment finance, or green leasing, supports companies to finance the acquisition of equipment with tangible environmental benefits, in alignment with the market standard and the Green Loan Principles.
Green Loans have characteristics aligned with the four pillars of the Green Loan Principles. The key pillar is that loans are made available to fully or partially finance/re-finance new or existing eligible Green Projects. These include, but are not limited to, renewable projects, green buildings, clean transport and energy efficiency.
Sustainable Supply Chain Finance
Take advantage of tailored banking services to support sustainability goals for buyers and suppliers by leveraging the power of our network.
As a leading international bank, we play a unique role in supporting a shift to sustainability in global supply chains. HSBC is embedding sustainability into the products and services we offer to customers, with the aim of supporting enhanced sustainability in our customers’ supply chains.
Green Trade Financing
Green Trade Finance covers trade finance facilities (of funded products such as trade loans and receivables finance) which are made available to exclusively fund environmentally sustainable trade activities (e.g. purchase, supply or trading, which can be evidenced by underlying trade transaction documents) and adhering to the Green Loan Principles (GLP).
Trade Sustainable Instruments
HSBC offers a sustainable label for guarantees, Documentary Credits, or standby letters of credit issued under a sustainable trade facility to exclusively facilitate environmentally and/or sustainable economic activities.
Sustainable Supply Chain Financing
Sustainable Supply Chain Financing (SCF) is a proposition where HSBC can make early payments to customer’s suppliers on terms that consider the suppliers’ sustainability performance. It aims to service the client needs of ensuring sustainable sourcing and reducing the carbon footprint within their supply chain (e.g. scope 3 emissions).
Sustainability-linked lending for Trade
Sustainability linked lending for Trade is where SLL covers both funded and unfunded trade products, which incentivise borrowers to achieve ambitious, pre-determined sustainability performance targets (SPTs).
Green, social and sustainability (GSS) bonds
‘Use of Proceeds’ bond to finance projects that address key environmental projects with positive environmental and social outcomes.
To meet the GSS Bond Principles requirements, the following four pillars will need to be addressed and disclosed in a publicly available Green Bond Framework document:
- Identify use of proceeds: Determine project categories from the suggested eligible green projects list.
- Process for project evaluation & selection: Determine eligibility criteria, demonstrate evaluation & selection process, define the governance structure, the environmental objectives and exclusions.
- Management of proceeds: Determine the method for allocation of funds from net bond proceeds.
- Reporting: Commit to publicly report annually, at least until full allocation of funds and offer independent assurance of your reporting.
Sustainability-Linked Bonds' characteristics varying depending on whether the issuer achieves pre-defined Sustainability Performance Targets (SPTs) e.g., Scope 1,2,3 targets or % of waste reduction.
HSBC co-chaired the International Capital Markets Association (ICMA) working group that developed the Climate Transition Finance Guidelines. The new guidelines act as additional guidance for issuers seeking to utilize green bonds, sustainability bonds or sustainability-linked bonds towards the achievement of their climate transition strategy.
Awards and Recognition
- HSBC was named Best Bank for Sustainable Finance in both Asia and the Middle East at the Euromoney Awards for Excellence
- Environmental Finance Lead Manager of the Year (6 awards) for: Corporate: Sustainability bonds; Financial Institution: Green and Sustainability Bonds; Local Authority / Municipality: Green Bonds; Sovereign, Supranational and Agency (SSA): Social and Sustainability Bonds
Get in touch to learn more about our banking solutions and how we can help you drive your business forward.