How Cheeky Panda grew its sustainable bamboo brand

Hygiene brand Cheeky Panda was founded after husband and wife co-founders Chris Forbes and Julie Chen took a trip to China in 2016. There they discovered that enormous amounts of surplus bamboo were going to waste.

“They were driving past fields and fields of bamboo which were getting burned and wasted,” says Tom Mitchell, Chief Finance Officer, Cheeky Panda. The bamboo was being cut to encourage regrowth, yet the offcuts weren’t being used for any other purpose. While the initial concept was to use this surplus bamboo to make toilet paper, Cheeky Panda now offers a wide range of bamboo products including facial tissues, kitchen roll, beauty and baby wipes and sanitary products.

As well as reducing waste, bamboo is a renewable material that can be harvested without killing the plant.¹ “Bamboo is a grass that can be cut each year and it just grows back, unlike trees which can only be harvested once,” explains Mitchell.

“There are also many other benefits to using bamboo instead of trees, including reduced water use² and reduced land use³,” he continues.

Another benefit of bamboo is that it grows naturally in large areas of China.⁴ “It’s like giving the forest a haircut,” says Thomas O’Brien, Sustainability Executive, Cheeky Panda. “Bamboo is harvested above the root⁵ and the grass naturally regrows,” he explains.

Cheeky Panda has been on a significant growth journey since its founding in 2016. Having HSBC UK as a banking partner has helped facilitate its goals. “HSBC UK has been a really important partner for us,” says Mitchell. “We’re a fairly small business, but we are benefiting from the support of a major UK bank.”

Cheeky Panda is currently in receipt of an HSBC UK Sustainability Improvement Loan, which links the cost of financing to a company’s EcoVadis rating. This allows them to benefit from reduced rates as their ESG rating improves in line with agreed targets. Similarly, if their rating was to decline, then the interest rate may increase.

“HSBC UK’s trade finance and invoice finance facilities have been extremely valuable to us,” says Mitchell. “Partnering with a major financial institution has been a vote of confidence for our business and we are very happy with the rates and services they provide.”

With these facilities in place, Cheeky Panda is able to maintain a consistent supply of products imported from China to a wide range of retail and distribution channels. “These facilities play a crucial role in supporting our business and reducing our upfront costs,” says Mitchell. “We appreciate the rate savings we make if our score improves, and it’s an effective way to communicate our sustainability ethos.”

Environmental, social, and governance (ESG) principles are central to Cheeky Panda’s mission. In 2024, it received an up-to-date comprehensive Cradle-to-Gate Life Cycle Assessment (LCA) from Carbon Footprint Limited.⁶ According to this assessment, Cheeky Panda found that when comparing the life cycle carbon emissions of Cheeky Panda bamboo toilet rolls to the UK industry average, there was a carbon emissions saving of 45% compared with recycled paper, and 27% compared to virgin wood tree-based paper.

The company’s innovative approach to reducing bamboo waste was met with a growing appetite for sustainable products among consumers. “The public is increasingly seeking sustainable options ⁷,” says Mitchell. “However, they don’t want to compromise on the quality of their toilet paper. Recycled paper cuts down on tree waste, but the quality doesn’t match up to that of our bamboo products,” he explains.

Cheeky Panda was determined to formalise its sustainability credentials by becoming a certified B-Corp business in 2019,⁸ reflecting its ethical and sustainability commitments, and attaining an EcoVadis bronze medal in April 2024, placing them in the top 35% of companies on the platform⁹.

Mitchell believes that these attainments are an effective way of communicating Cheeky Panda’s sustainability credentials to its consumers and stakeholders. “Becoming B-Corp certified was really valuable to us and helped raise our profile,” he says. “It’s something that really resonates with sustainability-conscious consumers.”

What’s more, EcoVadis ratings are increasingly recognised by businesses. “We supply to a wide range of buyers, from retail stores and online marketplaces to janitorial firms and hospitality providers,” says Mitchell.

“Having an EcoVadis rating has been a powerful way to raise our profile,” he explains. “It’s an effective way to give yourself a sustainability health check and keep your standards high, while communicating your values to stakeholders.”

Today HSBC finance a number of industries that significantly contribute to greenhouse gas emissions. We’re committed to supporting businesses to meet the challenge of becoming more sustainable and to reducing our own emissions. You can find out more about our climate strategy here.