08 October 2020

HSBC to commit USD1 trillion towards achieving a net zero economy: Reconfirms pledge to advance Singapore’s sustainability strategy

** HSBC to commit up to USD1 trillion of finance and investment by 2030 to help with the transition
**HSBC to target net zero in operations and supply chain by 2030**
**Further enforces commitment to developing Singapore as a sustainable financing hub**

HSBC Group today announced an ambitious plan to prioritise financing and investment that supports the transition to a net zero global economy, citing a landmark opportunity to build a thriving, resilient future for society and businesses.

To achieve this ambition, HSBC aims to:

  • Make available to customers up to USD1 trillion of finance and investment by 2030 to help with their low carbon transition.
  • Align its business activities to the goals of the Paris Agreement and a pathway to net zero by 2050 or sooner.
  • Enhance its support for customers in their transition to low carbon, providing dedicated financing support and advice for their unique transition journeys.
  • Unlock new climate solutions by creating one of the world’s leading natural capital managers, creating a USD100m venture debt fund for CleanTech innovation, and launching a philanthropic programme to donate USD100m to bring new solutions to viability and scale.
  • Work in partnership with its peers, customers, regulators, governments and wider society to effect change across the financial system.

Full details of the Group’s commitment in detail can be found here: https://www.hsbc.com/media/media-releases

Reconfirming commitment to Singapore

HSBC Singapore has been at the forefront of driving the sustainability agenda within Singapore. It has led market-leading transactions, launched several innovative sustainability-linked solutions, and is driving industry groups to embed sustainability into banking practices within Singapore.

HSBC Singapore’s Chief Executive Officer, Tony Cripps, discussed what the Group’s commitments means for the Bank’s role in the Republic: “Climate change will be one of most significant challenges for Singapore and Southeast Asia over the next decade, and the need to transition to a low carbon position is crucial, inevitable and accelerating. As a priority market for HSBC, we intend to draw upon our Group’s lending commitments to support our clients in their own sustainability transitions. This is about driving real and actionable change in ourselves and clients.”

“But we will not stop here. HSBC Singapore pledges to develop adequate capabilities within the banking industry in the areas of risk management, banking knowledge, and solutions to enable the delivery of Singapore’s climate ambitions. Singapore is also the launch-pad for much of ASEAN’s sustainable finance growth. So we are committed to not only advancing Singapore’s goals, but also supporting the Southeast Asia region as it seeks to address the future challenge of climate change.”

HSBC Singapore’s milestones in sustainable finance:

  • First green loan for Build-to-Lease Industrial Park Asset in SG: Soilbuild Group Holdings’ first green loan (SGD248m, HSBC Sole Green Structuring Arranger and joint Mandated Lead Arranger)1
  • First multi-currency green loan secured by SG company: City Developments Limited’s first green loans; first in SG to be used for new property developments (SGD500m, HSBC Structuring Advisor)2
  • Supported SG company to raise first green loan in Ireland: Ireland’s first ever GLP1 compliant green loan for Oxley Holdings (EUR77.3m, HSBC Sole Lender and Green Loan Coordinator)3
  • Supported client to raise its first sustainability-linked RCF in Asia: Louis Dreyfus’s first sustainability-linked revolving credit facility in Asia (USD650m)4
  • HSBC SME Green Loan – a first for the Singapore market recognising SG industry certifications for Loan qualification5
  • HSBC Green Deposit Account – Singapore first of HSBC’s markets to launch the product for corporate clients6
  • Additionally, HSBC has been named Euromoney’s Best Sustainable Finance Bank in Asia for three consecutive years.

HSBC Singapore’s role in furthering the climate agenda within the banking industry

HSBC has been working with industry and regulators in Singapore to develop the country’s position as a sustainable finance hub, including:

  • Co-chair of the MAS Environmental Risk Management (EnRM) Working Group that drafted the EnRM Guidelines for Banks, as well as Chair of the Sub-committee looking at the Risk Management area of the Guidelines.7
  • Supported the Singapore Institute of International Affairs “Financing Sustainable Infrastructure in ASEAN” report (published in April 2020)8
  • Supported the Climate Bonds Initiative ASEAN Green Finance State of the Market 2019 Report (published April 2020)9

Disclaimer

This article was prepared by The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch.

The article is intended for those who access it from within Singapore and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

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