Sustainable Supply Chains
Supply chains are one of the most important levers for banks and businesses to create a positive effect on the world. A typical consumer company’s supply chain creates far more social and environmental impacts than its own operations, accounting for more than 80% of greenhouse-gas emissions and more than 90% of the impact on air, land, water, biodiversity, and geological resources.1
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 its customers’ supply chains.
Sustainable Supply Chain Finance
HSBC offers a sustainable supply chain finance solution, which addresses customers’ working capital needs through a tiered pricing solution based on the company’s methodology for measuring the sustainability performance of its suppliers.
Two examples of sustainable supply chain finance programs HSBC supports are with German sportswear company PUMA SE and U.S. retail giant Walmart Inc. The first-of-its kind program for the apparel industry with PUMA incentivizes improvements to suppliers’ social, environmental and health and safety standards. The scheme with Walmart, set up in 2019, pegs a supplier's financing rate to its sustainability credentials, including progress on cutting carbon emissions.
1 McKinsey & Company, “Starting at the source: Sustainability in supply chains”, November 2016