Sustainable Finance

Sustainability is becoming important for business in Bermuda and beyond as global awareness of CO2 emissions and resource consumption increases. Investors are becoming increasingly interested in the carbon management of the firms they invest in. This includes green buildings, clean transport, energy efficiency, recycling, sustainable manufacturing, rejuvenation of land and renewables to name a few.

Sustainable practices can also save money by driving energy and cost efficiencies, waste reduction and innovation. To fund these initiatives, banks and investors are looking to green financing: the raising and investment of capital into projects, products and companies that contribute to a more sustainable, low-carbon and climate-resilient economy.

HSBC globally has committed to being a leader in this transition. Having played an important role in establishing the Green Bond market, we have encouraged diversification among issuers and investors by initiating new structures and progressive dialogue. Award-winning research on climate change from our Climate Centre of Excellence is helping enhance the broader understanding of this market.

An active member of the Green Bond Principles Executive Committee, we issued our inaugural EUR500m Green Bond in 2015. We have supplemented further green bonds with loans, revolving credit and other general financing products to help customers both in Bermuda and globally achieve their sustainability goals.

An active member of the Green Bond Principles Executive Committee, we issued our inaugural EUR500m Green Bond in 2015. We have supplemented further green bonds with loans, revolving credit and other general financing products to help customers both in Bermuda and globally achieve their sustainability goals. Our sustainable finance offering helps businesses meet their environmental goals with a suite of green and sustainable products. HSBC has aligned its Green Loan offering to the Loan Market Association's Green Loan Principles, which aim to create market standards and guidelines, providing a consistent methodology for use across the green loan market, in addition we have developed HSBC's Eligible Criteria for Green Activities with the support of Sustainalytics.

Green Loans

Green Loans are made available for the finance or refinance, in whole or in part, of new or existing eligible Green Projects. Green Projects include, but are not limited to, renewable energy, pollution prevention, clean transportation, energy efficiency, climate change adaptation, sustainable water and waste management and green buildings.

Sustainability Linked Loans

Sustainability Linked Loans (“SLLs”) aim to facilitate and support environmentally and socially sustainable economic activity and growth by linking a business’ cost of capital to ESG/sustainability metrics. SLLs are similar to normal corporate loans and can be used for any purpose but include pre-determined sustainability performance targets which measure improvements in the business’ sustainability profile.

Sustainable Trade Instruments

Sustainable Trade Instruments are guarantees, letters of credit, or standby letters of credit issued under a sustainable trade facility made available to exclusively facilitate environmentally and/or socially sustainable economic activities (e.g. supply, production, of sustainable goods/services or support of a sustainable project) adhering to the HSBC Sustainable Trade Instrument Principles (STIP). In order meet these principles, you a business will need to demonstrate that the underlying economic activities provide clear environmental and/or social benefits or have sustainability objectives in line with the United Nations Sustainable Development Goals (UN SDGs).

Whether it’s complying with tighter regulation, meeting growing customer expectations or keeping pace with your competitors, businesses cannot afford to ignore sustainability. Contact your Relationship Manager to learn more about how to get started. If you need assistance in contacting your Relationship Manager, please call 299 – 5555.