NEW DELHI (India CSR): HSBC India has announced a Green Deposit Programme. Available to corporate clients, deposits under this programme will finance green initiatives such as renewable energy, clean transportation, pollution prevention & control, green building, sustainable water, waste water management and others, providing a simple way for companies to support environmentally-beneficial projects.
The Green Deposit is available in INR as Term Deposit. 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. As a product, Green Deposit offers stable principal, pre-agreed return and similar levels of principal protection as a bank deposit, a statement said.
HSBC will provide customers with a quarterly report containing portfolio-level information regarding the use of the deposited funds. Corporates looking for 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.
Hitendra Dave, Head-Global Banking and Markets, HSBC India said, “It is becoming increasingly obvious to business leaders that sustainability is a strategic business imperative. We are well positioned to leverage our global expertise and resources to support our clients’ journey towards embedding sustainability as a strategic priority. 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.”
By leveraging a deep understanding of sustainable finance and international green finance benchmarks, HSBC India has already established its capability and expertise in Green Loans. The Bank has supported a number of landmark Green financing transactions across multiple sectors.
HSBC India had recently financed the green loan aligned with the Green Loan Principles in the renewables sector as the Sole Lender, the Sole Green Loan Advisor and the Sole Account Bank for a 250 MW wind power project at Kutch, Gujarat, India set up by a leading renewable company in India. This is a landmark transaction in the Indian market and the first green loan aligned with the Green Loan Principles in the renewables sector by HSBC in India.
There has been a demand for increased transparency and accountability on the environmental impact of businesses by a growing segment of stakeholders. This has been fuelled by growing concerns regarding climate change and depletion of natural resources. It emphasizes the role of corporates in meeting long term, sustainable development goals.
“HSBC is fully committed to its own sustainability approach and compliance commitments that it has made in the public domain.”, Bank’s statement said.
