HSBC Strengthens Support for Hong Kong Companies in Low Carbon Transition with Green Deposits
Published: March 29, 2021
HSBC further enriches its suite of green finance solutions with the roll-out of Green Deposits for businesses in Hong Kong today. Commercial customers, in particular SMEs, can now include the sustainability agenda into their treasury activities with a simple and predictable deposit product, contributing to a greener and more resilient future.
The pandemic has prompted Hong Kong businesses to rethink priorities and plan for more sustainable developments. Almost all Hong Kong companies (96%) believe a greater focus on sustainability will drive growth, with 46% expecting a modest growth of up to 5%; and 14% even seeing a growth of 10% or more1. Market expectation towards a sustainable operation is also at an all-time high. According to another survey2, close to 90% of Hong Kong individual respondents believe that companies have a moral duty to help create a sustainable future.
Frank Fang, Head of Commercial Banking, Hong Kong, HSBC, said: “As the leading bank in the sustainable finance market, HSBC strives to help businesses across the city thrive through transition to low carbon emissions. The latest addition of Green Deposits to our comprehensive solutions represents our ongoing commitment in the climate agenda, supporting a wider spectrum of companies to go green. This in particular can benefit SMEs that might have limited financial resources to drive change.”
Available in HKD and USD with tenors of three months or above, the fixed-term Green Deposits carries minimum deposit threshold of HKD100,000 or USD20,000 for SMEs. Proceeds will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate resilient and sustainable economy as defined by the HSBC Green Bond Framework.
Yvonne Yiu, Head of Global Liquidity and Cash Management, Hong Kong, HSBC, said: “We are expanding our product capabilities to support companies in fulfilling their sustainability goals. The Green Deposits will enable corporate treasurers to use their surplus cash balances to fund environmentally beneficial projects and initiatives with themes such as renewable energy, sustainable waste management and climate change adaptation, giving them more flexible ways to participate in the sustainable finance market.”
HSBC has been embedding sustainability into its products and services, including access to capital markets, lending, transaction banking, advisory services, and investments. The Bank has also tailored lending solutions for companies of different sectors and sizes, including a lending programme that allows Hong Kong SMEs to earn cash rewards for cutting carbon emissions. It made market firsts in Hong Kong in the past two years with the issuances of green retail and institutional certificates of deposit. In February 2021, the Bank issued Asia’s first RMB denominated retail green certificates of deposit in Hong Kong.
HSBC also launched today the “Business Plan for the Planet” campaign to build further awareness of the importance of a net zero economy, and empower businesses with relevant knowledge about sustainable finance and more. For further information, please visit: https://business.hsbc.com.hk/bpfp.
1 HSBC Navigator surveyed over 10,000 companies in 39 markets, including 351 companies in Hong Kong, between September and October 2020. Please visit https://www.business.hsbc.com.hk/en-gb/hsbc-navigator for information.
2 Climate Insights Report is a research report conducted by HSBC and Morning Consult from December 21, 2020 to January 1, 2021 in Mainland China, Hong Kong, India, the UAE, UK, and US. A sample of 1,000 adults in each market were surveyed.