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Green Trade

Back to Sustainability for business in China

Green Trade Finance

Green Trade Finance is a proposition where a trade finance facility is made available to exclusively fund environmentally sustainable trade activities and adhering to the Green Loan Principles (GLP).

Applicable products include Trade Loans, Receivables Finance, Imports and Exports, Commodity and Structured Trade Finance, and Portfolio Management & Distribution, and Bank/Commercial Acceptance Drafts Discounting.

Key environmental objectives (indicative examples)

  • Climate change mitigation
  • Pollution prevention and control
  • Sustainable water use and wastewater management
  • Natural resource and biodiversity conservation
  • Circular economy and resource-efficient model

Sustainable Supply Chain Financing

Sustainable Supply Chain Financing (SCF) is a proposition where HSBC can make early payments to customer’s suppliers on terms that take into account the suppliers’ sustainability performance.

It aims to service the client needs of ensuring sustainable sourcing and reducing the carbon footprint within their supply chain.

For you

  • Implement sustainable procurement standards to encourage change
  • Strengthen your supply chain sustainability and reduce footprint
  • Enhance sustainability strategy and credentials

For your suppliers

  • Alternative access to working capital finance at a competitive rate without additional borrowing or taking up existing quota
  • Economic benefits from subscribing to your strategy

Sustainable Trade Instrument framework

Sustainable Trade Instrument Framework is developed to establish a high standard and a guiding framework for financing instruments for sustainable trade, and is designed exclusively for supporting sustainable economic activities that demonstrate clear environmental and/or social benefits

Products in scope

  • Letter of Credit
  • Bank Acceptance Draft, etc.

Why HSBC?

HSBC is well placed and

  • Is a founding member of the Loan Market Association (LMA) and has worked with the LMA to help develop the industry standard GLP
  • Has extensive experience as Green Arranger/Coordinator in developing bespoke structures to ensure minimal execution risk

Need help?

Get in touch to learn more about our banking solutions.