Sustainability for business in Australia

Green Loans have characteristics aligned with the four pillars of the Green Loan Principles. The key pillar is that loans are made available to fully or partially finance/re-finance new or existing eligible Green Projects. These include, but are not limited to, renewable projects, green buildings, clean transport and energy efficiency.

Social Loans have characteristics aligned with the four pillars of the Social Loan Principles. The key pillar is that loans are made available for the finance or re-finance of eligible Social Projects. These include projects, but not limited to, essential services (such as healthcare, government services), affordable housing, food security and sustainable food systems and socioeconomic advancement and development.

Sustainability-Linked Loans (SLLs) are aimed at supporting the borrower’s transition to a low-carbon economy through encouraging achievement of borrower’s sustainability goals. SLLs should comply with the five core pillars of the LMA’s Sustainability Linked Loan Principles (SLLPs).

Green Bonds are funded with proceeds allocated towards environmental projects, such as renewable energy, energy efficiency (such as energy storage, smart grids), pollution prevention and control, etc.

Social Bonds are funded with proceeds allocated towards social projects. For example, but not limited to, affordable basic infrastructure (e.g. clean drinking water, sewers, sanitation, transport), or access to essential services (e.g. health, education and vocational training, healthcare, financing and financial services).

Sustainability-Linked Bonds are KPI-linked, with bond characteristics varying depending on whether the issuer achieves pre-defined Sustainability Performance Targets (SPTs) e.g., Scope 1,2,3 targets or % of waste reduction.

Green Trade Finance covers trade finance facilities (of funded products such as trade loans and receivables finance) which are made available to exclusively fund environmentally sustainable trade activities (e.g. purchase, supply or trading, which can be evidenced by underlying trade transaction documents) and adhering to the Green Loan Principles (GLP).

Sustainable Supply Chain Financing (SCF) is a proposition where HSBC can make early payments to customer’s suppliers on terms that consider the suppliers’ sustainability performance. It aims to service the client needs of ensuring sustainable sourcing and reducing the carbon footprint within their supply chain (e.g. scope 3 emissions).