HSBC India

HSBC India: “Green Deposit Programme” to support Eco-Friendly Initiatives

HSBC India launched a new initiative “Green Deposit Programme” for all corporate clients. As the name suggests, the bank will finance and support “green” initiatives such as biodiversity conservation, clean transportation, climate change adaptation, energy efficiency, green buildings, pollution prevention and control, renewable energy, sustainable resource management.

“This innovative and unique fixed tenure deposit will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate-resilient, and sustainable economy,” stated bank.

What will the bank provide?

“As a product, ‘Green Deposit’ offers stable principal, pre-agreed return and similar levels of principal protection as a bank deposit”, mentioned the bank.

HSBC India under this scheme will provide customers a quarterly report containing portfolio-level information regarding the use of the deposited funds.

Who will the scheme benefit?

Head-Global Banking and Markets, HSBC India, Hitendra Dave, voiced, “Our Green Deposit proposition is designed to help corporates participate in the sustainability agenda with the safety and assurance of a bank deposit. It is equally suitable for corporates who have either a mature sustainability agenda or are looking to start on this path. This product is aligned with our global commitments towards sustainable financing and will allow clients to participate in the journey towards a low carbon economy.”

Bank further mentioned, “Corporates looking for the inclusion of a sustainability agenda into their treasury activities or those that have limited opportunities for investment in environmentally beneficial projects will find this product particularly relevant,”

It is basically for:

  1. Companies looking for the addition of sustainability in their financial activities.
  2. Companies that prefer investing surplus cash in deposits instead of investing in marketable securities.
  3. Companies that have restricted opportunities for investment in environmentally friendly projects.

How will it work?

The sum deposited will be dedicated to a portfolio of green assets that meet the industry standards.

Why is it a good step?

In the current times, new initiatives especially the ones supporting the environment are very important. In today’s time, the depletion of natural resources is not much of a concern for the businesses therefore it is a very positive step by the bank. Transparency and accountability with regard to the environment of most businesses have not been in order. This particular initiate can aid corporates to meet long term and sustainable goals and bring the order back.

It is simple and transparent hence one can expect anticipated returns. The process is similar to a regular term deposit and thus is easy to understand. It is an eco-friendly initiative hence it will also increase a company’s reputation in front of the investors.

Earlier Achievement

HSBC has also been financing Green Loans that provide extremely approachable plans for all companies to place their financing with their eco-friendly plans.

The projects could be renewable energy, energy efficiency, green buildings, pollution prevention, and 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 and products from waste.

2

No Responses

Write a response