Chapter 2: Treasury4Good Award Winners

Charging Ahead: Luxshare Plugs into Sustainable Trade Finance

A key supplier in the consumer electronics sector, Luxshare Precision Industry (Luxshare) is aligning its financing with its environmental goals, linking funding costs to progress in clean energy use and waste transformation. This approach is helping the company reduce its carbon footprint while improving financial efficiency.

Luxshare is dedicated to reinforcing its commitment to sustainability by embedding environmental targets into its financial strategy. With a commitment to achieving supply chain carbon neutrality by 2030, the company has gone beyond corporate pledges and made environmental progress a financial priority. And by transforming its receivables purchase programme into a sustainability-linked structure, Luxshare is proving that green goals and smart finance can go hand in hand.

Consumer electronics is an industry where supply chains are under increasing pressure to reduce their environmental impact. The company has long aligned its ESG approach with the United Nations Sustainable Development Goals (UN SDGs), but this latest move represents a fundamental shift, tying financial incentives directly to sustainability performance. Instead of treating ESG as an add-on, Luxshare has made it a core driver of its treasury strategy.

From targets to action

In Q3 2023, the business began discussions with banking partner Standard Chartered to introduce a financing agreement that links lending rates to environmental performance. By May 2024, this agreement was formalised, embedding sustainability-linked targets into Luxshare’s receivables financing.

The revised structure ties financing terms to two key environmental metrics: the proportion of clean electricity used and the percentage of waste that is recycled or repurposed. In turn, these KPIs align with the company’s long-term sustainability goals and the expectations of its customers and partners.

The first official measurement of Luxshare’s progress is expected in April or May 2025, assessing whether the company has met its sustainability-linked performance targets. Nevertheless, Luxshare has set milestones of reaching 40% clean electricity usage in 2024 and 50% by the end of 2025. Likewise, its waste transformation ratio target was 88% for 2024 and is expected to rise to 90% by 2025.

These commitments contribute to global sustainability efforts, particularly UN SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action). More importantly, they send a clear message that sustainability isn’t merely a corporate buzzword for Luxshare. Rather, it’s a business imperative. And by proactively embracing ESG, the company is strengthening its relationships with key partners and positioning itself as a leader in responsible manufacturing.

A portable framework

Instead of applying generic green finance labels, Luxshare’s model directly connects its sustainability efforts with financial outcomes. Meeting these targets enables the company to access more favourable financing rates, ensuring that its environmental progress delivers both operational and economic value. This approach also creates a framework that other businesses can follow, showing how financial strategy can support long-term sustainability goals in a practical, measurable way. By integrating environmental performance into treasury decisions, Luxshare is taking steps that will shape its industry’s approach to sustainable growth.

Looking ahead

As the company continues to expand its sustainability efforts, its approach to finance offers a clear example of how businesses can balance environmental responsibility with sound financial management. The steps taken today, in partnership with Standard Chartered, will help shape a more efficient and lower-carbon future for its operations and the wider supply chain.

By using financing as a tool for environmental impact, Luxshare is demonstrating that sustainability is both a corporate responsibility and a strategic advantage. As industries continue to evolve, businesses that integrate sustainability into their financial planning will be better positioned for long-term success.

This article was last updated on 23 April 2025

Powering Portugal: How Chint is Leading the Charge in Renewable Energy

A leading Chinese cleantech company, Chint, has secured a €420m bank guarantee facility to support the development of 5.5GW of new solar capacity in Portugal. This financing structure bridges Chinese and European banking markets, reinforcing confidence in renewable energy investment.

Chint is making significant strides in Europe’s renewable energy sector with a major solar project in Portugal. To realise its vision, Chint required a complex and large-scale bank guarantee (BG) solution to meet the stringent requirements of local grid operators. Standard Chartered stepped in as the sole mandated lead arranger and structuring bank, crafting an innovative syndicated BG facility to support Chint’s expansion.

But securing a €420m committed syndicated BG facility involved navigating a series of financial, regulatory, and operational complexities. The size of the guarantees needed was substantial, and the long-term nature of the project – spanning nine years – added another layer of intricacy. In addition, regulatory differences between China and Europe required careful alignment, as did tax frameworks and the operational requirements of a diverse group of banks.

For example, Portugal’s grid operators required that guarantees come from investment-grade European banks, with strict, non-negotiable templates governed by Portuguese law. Meanwhile, the syndicate included banks ranging from Chinese state-owned institutions to European commercial banks, each with different risk appetites and ways of operating. Bridging these financial, legal, and cultural differences was a major challenge.

Investing in a greener future

To address these hurdles, Standard Chartered developed a dual-level structure that connected Chinese and European banking partners. Through this syndicated BG facility, Chinese banks issued counter-guarantees to European fronting banks, ensuring the guarantees met local requirements while tapping into market appetite in both regions. The bank also played a key role in structuring the documentation, ensuring regulatory compliance, and co-ordinating between the different banking entities.

This approach not only provided Chint with the financial backing required but also created a scalable model for future solar projects. The facility enables Chint to continue its expansion in Europe while supporting Portugal’s National Energy and Climate Plan, which includes ambitious targets for reducing greenhouse gas (GHG) emissions and increasing renewable energy capacity.

Delivering lasting impact

The success of this financing arrangement means Chint can develop 5.5GW of new solar capacity in Portugal, a vital contribution to the country’s energy transition. Moreover, this project aligns with Portugal’s climate objectives, including a significant reduction in GHG emissions by 2030. Beyond the immediate benefits for Chint, the transaction demonstrates increasing confidence among investors in the potential for collaboration between Chinese and European financial institutions (FIs) in the renewable energy sector.

Elsewhere, this transaction reflects Chint’s leadership in the cleantech sector and its commitment to expanding renewable energy solutions beyond China. As the company continues to grow its presence in Europe, this initiative serves as a model for future sustainable finance projects.

Recognising this solution as the Best Sustainable Finance Project – Silver at the 2025 Treasury4Good Awards highlights the importance of innovative financial support in accelerating the transition to renewable energy. And Chint’s work in Portugal exemplifies how effective collaboration between FIs and clean energy companies can deliver real-world impact in the drive towards a more sustainable future.

This article was last updated on 23 April 2025