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HSBC warns companies to step up sustainable strategy to get financing

October 05, 2022

South China Morning Post:

HSBC warned that companies will need a “robust and clear sustainability” strategy or they will find it increasingly difficult to get financing, a senior executive said on Wednesday.

“You need to be [green], otherwise you’re going to find it increasingly difficult to obtain capital from us and from the markets generally,” said Jonathan Drew, head of global banking sustainability in the Asia-Pacific at HSBC, speaking at the “Hong Kong’s race towards a net-zero future” panel discussion at the Rethink HK conference.

Hong Kong’s government has set a goal to achieve carbon neutrality by 2050, part of global efforts to reduce emissions and tackle climate change. Companies and banks are beginning to feel the pressure to introduce initiatives that align with these targets.

HSBC, the largest of the city’s three currency-issuing banks, has committed to reducing financed emissions in its portfolio to net zero by 2050 or earlier, along with other banks across the globe such as London-based Standard Chartered and Singapore-based DBS. This means that banks will be keeping an eye on the emissions generated from the projects or companies that they finance or lend capital to. 

[Martin Choi]

More: HSBC warns only companies with robust sustainability strategy will get finance as banks take steps to tackle climate change

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