HSBC Canada launches Green Finance products to support Canadian businesses

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HSBC Bank Canada is supporting Canadian companies to meet their environmental and sustainability goals with the launch of new Green Finance products, the first of their kind in Canada aligned to the Loan Market Association’s Green Loan Principles.

The new range – available for businesses of all sizes from small to medium enterprises (SMEs) through to large corporates – includes term loans, commercial mortgages and leasing products.

Linda Seymour, Head of Commercial Banking at HSBC Bank Canada, said: “As companies look to become more sustainable, they are investing in green projects and activities. We can continue to support their aspirations through our Green Finance products, which support businesses as they pursue sustainable and environmentally-focused activities.”

HSBC’s latest Navigator survey reveals that 95% of Canadian businesses are feeling the pressure to be more sustainable. Their top motivations in implementing sustainability practices are to grow sales (29%), improve their employer brand (24%) or improve transparency and traceability of their products (22%).ii

The Green Finance range includes:

Term Loans
The minimum Green Loan starts at $500,000, enabling a broad range of companies to access finance to support sustainability projects.

Commercial Mortgages
Access loans for purchasing new property, as well as refinancing or making sustainability improvements to existing buildings.

Leasing
Leasing allows companies to use their working capital to keep their business running, instead of financing long-term green assets.

A green loan allows customers to showcase their green credentials to stakeholders by demonstrating that a portion of their funding is ring-fenced for green activities. Green credentials are becoming increasingly important for businesses providing goods or services to large enterprise customers, as these organizations need to demonstrate their supply chain’s sustainability credentials, either to employees or investors.

Targray, a major international provider of innovative materials for photovoltaic manufacturers – and a long-time HSBC Canada customer – is the type of company that might benefit from HSBC’s Green Finance products. CFO Michel Tardif, said: “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.”

Linda Seymour added: “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.”

HSBC Bank Canada has aligned its Green Finance offering to the Loan Market Association’s Green Loan Principles – a set of market standards and guidelines providing a consistent methodology for use across the wholesale green loan market. This initiative forms part of HSBC’s global commitment to provide $100 billion in sustainable financing and investment by 2025.

Eligible activities include:

  • Renewable energy, including storage and smart grids;
  • Pollution prevention and control, including reduction of air emissions and greenhouse gas control;
  • Clean transportation;
  • Climate change adaptation;
  • Sustainable water and wastewater management;
  • Sustainable management of living and natural resources and land use;
  • Waste prevention, reduction, recycling; waste to energy; products from waste.

HSBC Bank Canada
HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the leading international bank in the country. We help companies and individuals across Canada to do business and manage their finances internationally through three global business lines: Commercial Banking, Global Banking and Markets, and Retail Banking and Wealth Management.

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