HSBC aims to boost small business decarbonisation with £500m green fund
New fund to offer cashback loans starting from £1,000 to help small businesses make green investments
HSBC UK yesterday announced a new £500m Green SME Fund in a bid to support businesses of all sizes accelerate the transition to a low carbon economy.
The fund will be available to businesses with a turnover of less than £25m from January 2022 and is set to offer small and medium-sized enterprises (SMEs) one per cent cashback loans starting from £1,000 for investing in green activities.
Speaking from the sidelines of COP26 Ian Stuart, CEO of HSBC UK, said the new offer aimed to address a significant gap in trhe market. “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,” he said. “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.”
New research from the bank published this week found that a quarter of small businesses want to play their part in the transition to net zero emissions and believe that environmental sustainability will help them grow, but they frequently face financial barriers that hamper efforts to decarbonise.
Businesses must meet the bank’s Eligible Criteria for Green Activities, which provides standards on renewable energy, energy efficiency and pollution among other things, to qualify for the cashback scheme. The bank also announced it has launched a Sustainability Assessment Tool that allows businesses to assess their sustainability and provides tailored recommendations to help them decarbonise.
This week’s launch forms part of HSBC’s commitment to provide up to $1tr of financing and investment to support its customers over the next 10 years.
