HSBC launches £500m green SME fund

HSBC UK has announced the launch of a special fund offering SMEs cashback on loans for green activities, as well as a new sustainability assessment tool providing insights and resources.

Posted on 27 January 2022

HSBC UK has announced the launch of a special fund offering SMEs cashback on loans for green activities, as well as a new sustainability assessment tool providing insights and resources. 

The Green SME Fund offers businesses with a turnover of less than £25 million one per cent cashback on loans starting from £1,000 to invest in a range of eligible green activities, covering:

  • Renewable energy

  • Energy efficiency

  • Pollution prevention and control

  • Sustainable management of natural resources and land use

  • Biodiversity conservation

  • Clean transport

  • Sustainable water and wastewater management

  • Waste management

  • Climate change adaptation

  • Eco-efficient and/or circular economy products or packaging

  • Green buildings.

 

‘Making it easier for small businesses’

HSBC is also launching a new Sustainable Assessment Tool that provides actionable insights and resources to help businesses transition to net zero.

Ian Stuart, CEO of HSBC UK, said: “Companies of all sizes and sectors have a role to play in the journey to net zero, however the sustainable finance market has been predominately focused on larger corporations. It’s critical that access to funds isn’t a barrier for small and medium sized businesses working to achieve lower carbon emissions.

“We want to help businesses seize the opportunities and growth potential that environmental sustainability offers and the fund, along with our new and expanding suite of tools and resources, will make it easier for small businesses to take practical steps to cut their emissions and help their customers to cut theirs too.”

Growth in green lending initiatives

According to recent research, nearly every UK financial services firm is expected to have a ‘green’ offering within year, with several major banks already offering green lending initiatives of their own.

Last year, Manchester-based school uniform provider David Luke installed a 1,000 panel solar PV system (pictured) with a green loan from HSBC.

 

Posted under General Interest and Financial and Professional Services on 27 January 2022