HSBC Launches $100 Million Climate Finance Initiative
Global banking and financial services company HSBC announced today the launch of a Climate Solutions Partnership with World Resources Institute (WRI) and WWF, aimed at unlocking barriers to finance for companies and projects that tackle climate change, and to bring emerging climate solutions to commercial viability and scale.
The global initiative is backed by US$100 million of philanthropic funding over five years from HSBC to support the projects. It will support the bank’s climate goals, announced last year, which include a target to facilitate between $750 billion and $1 trillion of finance and investment by 2030 to help clients with their climate transition strategies.
HSBC Group Chief Executive Noel Quinn said:
“The transition to net-zero must be driven by cutting edge science and innovation – and also collaboration. Finding the best solutions for clean energy, clean transport and environmental protection is vital, as is making them commercially viable. Our Climate Solutions Partnership with the World Resources Institute (WRI) and WWF will make a tangible contribution towards those goals, combining our knowledge and resources to accelerate the pace of change towards a more sustainable future.”
The new partnership will focus on three workstreams, including start-up firms developing carbon-cutting technologies, projects that protect and restore biodiversity, and initiatives to help transition energy growth to renewables in Asia. Within these areas, the initiative will support sustainable projects that would otherwise face barriers to finance due to insufficient policy and regulatory frameworks, gaps between demand and supply, or a lack of mature measurement tools and business cases.
Interim President and CEO, WRI Manish Bapna said:
“Financial institutions have the reach and resources to advance climate solutions and policies to put the world on a more inclusive and sustainable trajectory. HSBC, with its high-profile and global presence, can set an example by shifting its portfolio toward net zero and nature positive investments. We are deeply pleased to be joining HSBC and WWF in this dynamic new partnership that will leverage each organization’s unique attributes. We can go further together than we can alone.”
Chief Executive of WWF-UK Tanya Steele added:
“With our climate in crisis, the financial sector must urgently rise to the challenge and drive the transition to a net-zero economy. Major players like HSBC have a crucial role to play in leading the sector to become part of the solution to our planet’s recovery and building a greener, fairer economy.”