Credit & Lending

Sustainable Facilities

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HSBC has made commitments to contribute to a sustainable economy around the world by becoming a zero-emissions bank. Sustainable finance is any form of financial service that integrates environmental, social and governance (ESG) criteria into business or investment decisions.

Green facilities

Green facilities allow our customers to meet their sustainable agendas, by actively attributing funds to green projects and building customer profiles within the Green Finance market.

Green Loans currently references Term Lending and Revolving Loan products (for more details regarding loans please follow the link)  that have characteristics aligned with the four components of the GLP (Green Loan Principles).

The green label can be applied to Trade Loans, Imports and Exports when meeting 4 pillars of the GLP (more details about Trade products can be found here).

In order the facility complies the “Green” definition the use of proceed of the facility should be met with one of the following Categories:

  • Renewable Energy

    1. Renewable Energy

    Production and transmission of energy
    Appliances & products associated with renewable assets

  • Energy Efficiency

    2. Energy efficiency

    New and re-fitting of existing buildings with assets like: 
    Energy storage; District heating; Smart grids

  • Green Buildings

    3. Green Buildings

    Need to meet Regional, National or Internationally recognised standards or certifications, such as:  
    LEED (Gold/Platinum); BREEAM (Good/Very Good); HQE (Excellent); CASBEE

  • Eco-Efficient and/or Circular Economy

    4. Eco-Efficient and/or Circular Economy

    Adapted products; production technologies & processes 
    Development of environmentally friendlier products (eco-label or environmental certification), resource-efficient packaging/distribution

  • Clean Transportation

    5. Clean Transportation

    Electric, Hybrid, Public, Rail, Non-motorised, and Multi-modal transportation 
    Infrastructure for clean energy vehicles and reduction of harmful

  • Sustainable management of living and natural resources

    6. Sustainable management of living and natural resources

    Environmentally Sustainable fishery and aquaculture
    Environmentally Sustainable forestry, including afforestation and reforestation 
    Preservation or restoration of natural landscapes

  • Sustainable management of land use

    7. Sustainable management of land use

    Environmentally Sustainable agriculture and animal husbandry 
    Climate smart farm inputs / Precision agriculture such as biological crop protection or drip-irrigation

  • Terrestrial and aquatic biodiversity conservation

    8. Terrestrial and aquatic biodiversity conservation

    Includes the protection of coastal, marine and watershed environments

  • Climate change adaptation

    9. Climate change adaptation

    Includes information support systems, such as climate observation and early warning systems

  • Pollution prevention and control

    10. Pollution prevention and control

    Reduction of air emissions & greenhouse gas control 
    Soil remediation

  • Waste management

    11. Waste management

    Waste prevention, reduction and recycling
    Energy/emission-efficient waste to energy 
    Products from waste and remanufacturing and associated environmental monitoring

  • Sustainable water and wastewater management

    12. Sustainable water and wastewater management

    Sustainable infrastructure for clean/drinking water, wastewater treatment, urban draining systems & river training   
    Flooding mitigation e.g. flood defense systems, porous pavements

Sustainability-linked facilities

An ESG/KPI Margin-Linked Loan is where the margin is set to vary according to the borrower’s performance. This can be linked to any of these measures: One or several ESG (environmental, social, governance) criteria; Other sustainability Key Performance Indicators (KPIs); The Borrowers’ own Sustainability Performance Targets (SPTs).

This represents a material enhancement that we propose on the 2 lending products “Term Loans” (including bi-laterals and syndications) and “Revolving Loans”.

Sustainable trade instruments refer to the guarantees, letters of credit, or standby letters of credit issued under a sustainable trade facility made available to exclusively facilitate environmentally and/or socially sustainable economic activities.

ESG criteria involve:

A. Environmental Categories

  • Renewable Energy

    Renewable Energy - Increases in the amount of renewable energy generated or used by the Borrower

  • Green House Gas (GHG) Emissions

    Green House Gas (GHG) Emissions - Reductions in GHG emissions in relation to products manufactured or sold by the Borrower, or to the production or manufacturing cycle

  • Energy Efficiency

    Energy Efficiency - Improvements in the energy efficiency rating of buildings and / or machinery owned or leased by the Borrower

  • Biodiversity

    Biodiversity - Improvements in conservation and protection of biodiversity, and contribution to biodiversity

  • Water Consumption

    Water Consumption - Water savings made by the Borrower

  • Waste Disposal

    Waste Disposal - Reductions in liquid and solid waste disposals in relation to products manufactured by the Borrower or to the production or manufacturing cycle

  • Circular economy

    Circular economy - Increases in recycling rates or use of recycled raw materials/supplies.  Achievements of zero-waste in production plants

  • Sustainable Sourcing

    Sustainable Sourcing - Increases in the use of verified sustainable raw materials / supplies

  • Sustainable Farming and Food

    Sustainable Farming and Food - Improvements in sourcing/producing sustainable products and/or quality products (using appropriate labels or certifications)

B. Social Categories

  • Human Rights and Community Relations
    Human Rights and Community Relations - Improvements in the Borrower’s management of the relationship between businesses and the communities in which they operate, including, but not limited to, management of direct & indirect impacts on core human rights and the treatment of indigenous people.  More specifically, such management may cover socio-economic community impacts, community engagement, environmental justice, cultivation of local workforces, impact on local businesses, license to operate, and environmental/social impact assessments
  • Affordable Housing
    Affordable Housing - Increases in the number of affordable housing units developed by the Borrower
  • Data Security

    Data Security - Reduction in the “risks related to the collection, retention, and use of sensitive, confidential and/or proprietary customer or user data”.  It includes social issues that may arise from incidents such as data breaches in which personally identifiable information (PII) and other user or customer data may be exposed.

    It addresses a company’s strategy, policies, and practices related to IT infrastructure, staff training, record keeping, cooperation with law enforcement, and other mechanisms used to ensure security of customer or user data

  • Employee Health and Safety

    Employee Health and Safety - Improvements in the Borrower’s “ability to create and maintain a safe and healthy workplace environment that is free of injuries, fatalities and illness (both chronic and acute).”  It is traditionally accomplished through implementing safety management plans, developing training requirements for employees and contractors, and conducting regular audits of their own practices as well as those of their sub-contractors

    The category further captures how companies ensure physical and mental health of workforce through technology, training, corporate culture, regulatory compliance, monitoring and testing, and personal protective equipment

  • Employee Engagement, Diversity and Inclusion

    Employee Engagement, Diversity and Inclusion - Improvement in specific, long-term goals relating to improvements in diversity, training and further education

  • Employee

    Employee - Training Increase in training hours for employees

C. Governance Categories

  • Business Ethics

    Business Ethics - Improvement in the Borrower’s “approach to managing risks and opportunities surrounding ethical conduct of business, including fraud, corruption, bribery and facilitation payments, fiduciary responsibilities, and other behaviour that may have an ethical component. This includes sensitivity to business norms and standards as they shift over time, jurisdiction and culture

    It addresses the company’s ability to provide services that satisfy the highest professional and ethical standards of the industry, which means to avoid conflicts of interest, misrepresentation, bias, and negligence through training employees adequately and implementing policies and procedures to ensure employees provides services free from bias and error

  • Building Strong Corporate Governance and Transparency
    Building Strong Corporate Governance and Transparency - Improvements in expertise of individuals sitting on the Borrower’s governance committees e.g. audit / compensation / compliance committees and so forth

Foreign Exchange

HSBC Bank Armenia

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