With recent reports highlighting that Canada is currently on track to miss the UN’s Sustainable Development Goals for 2030, the Canadian arm of British banking giant HSBC has stepped in with an array of Green Finance products aimed at driving sustainability across the country.
The new products, available to organisations of all sizes, include term loans, commercial mortgages and leasing products, with the minimum Green Loan standing at CA$500,000. According to HSBC Canada, these products are the first of their kind to meet the standards of the Loan Market Association’s Green Loan Principles which themselves outline “a consistent methodology for use across the wholesale green loan market”.
HSBC has made a global commitment to provide US$100bn in sustainable financing and investment by 2025, with these efforts from its Canadian arm being part of that strategy.
The bank has detailed activities and projects that will be eligible for the new products, including: renewable energy, storage and smart grids; pollution prevention and control; clean transport; climate change adaptation; water and waste management; sustainable management of natural resources and land; and waste prevention and recycling.
HSBC Canada noted that its recent Navigator survey found 95% of Canadian businesses are feeling pressured to boost their relative sustainability, with the impetus being to grow sales, strengthen brands and improve product transparency and traceability by appealing to environmentally and ethically conscious consumers.
“As companies look to become more sustainable, they are investing in green projects and activities, said Linda Seymour, Head of Commercial Banking at HSBC Bank Canada, in the company’s press release. “We can continue to support their aspirations through our Green Finance products, which support businesses as they pursue sustainable and environmentally-focused activities.
“Businesses have asked for products that are aligned to their sustainability goals, and we are confident this suite of Green Finance products will support them.”
Michel Tardif, CFO at Targray, a major provider of materials for photovoltaic technology manufacturers and a company which HSBC Canada highlight as the kind to benefit from its new products, added: “Targray is focused on supporting the growth and sustainability of novel energy industries through collaboration, innovation and value creation.
“To do that, we need partners who understand how to financially support companies in their sustainability efforts. We are glad to be working collaboratively with HSBC to create new solutions that fuel the world’s transition towards sustainable energy. Their green loan offering is certainly a step in the right direction.”