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Sustainability

HSBC UK Sustainability Improvement Loan

The HSBC UK Sustainability Improvement Loan gives businesses the opportunity to demonstrate their commitment to sustainability and link the cost of financing to their sustainability rating. We’ve partnered with EcoVadis – a leading provider of sustainability ratings – so that businesses who complete an EcoVadis ESG assessment may access reduced interest rates as their EcoVadis rating improves in line with agreed targets. Similarly, interest rates may increase if their EcoVadis rating declines.

Supporting businesses on their sustainability journey

With customers increasingly expecting sustainable products and with growing regulatory ESG (Environmental, Social, Governance) requirements, many businesses are aware of the need to become more sustainable. However, the resource, time and expertise required to develop a sustainability strategy can be a barrier to meaningful change, particularly for small and medium-sized firms.

As part of our support for customers, we've partnered with EcoVadis, who have provided sustainability ratings to over 130,000 companies globally¹.

EcoVadis can help you understand how sustainable your business is and identify the changes you can make to improve your sustainability rating. As your EcoVadis rating improves in line with agreed targets, you may be able to benefit from reduced interest rates with an HSBC UK Sustainability Improvement Loan. Similarly, your interest rate may increase if your EcoVadis rating declines.

Today we 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.

What are the benefits of an EcoVadis ESG rating?

Gaining insights into your sustainability metrics can be resource intensive. This can prevent you making decisions to enhance your ESG profile. However, EcoVadis offers pricing plans tailored to the scale of your business and your reporting needs.

After your assessment you'll receive an EcoVadis scorecard measuring your performance out of 100 across four areas: environment, labour and human rights, ethics, and sustainable procurement.

EcoVadis may help you:

  • Gain insights into your ESG strengths and weaknesses, with recommendations for improving your performance
  • Benchmark your sustainability performance against your peers by industry or country
  • Receive ongoing reporting so you can continue to track your progress

What is the Sustainability Improvement Loan?

An HSBC UK Sustainability Improvement Loan is a facility which is linked to your EcoVadis ESG rating. It's designed to help small and medium-sized businesses link the cost of financing to their sustainability rating. If eligible, your interest rate will be linked to your EcoVadis rating, reducing the cost of finance if your rating improves in line with agreed targets. Similarly, your interest rate may increase if your EcoVadis rating declines.

Many businesses in the early stages of their sustainability journey have limited resources for measuring their ESG performance. This solution helps to bridge that gap by improving your ability to access sustainability-linked finance².

It may be used for general corporate purposes, and is available for a range of business loan and trade products.

Speak to your Relationship Manager for more information.

Lending is subject to status.

What are the eligibility criteria?

An HSBC UK Sustainability Improvement Loan is available for businesses in the UK seeking a new facility, or wishing to refinance or convert an existing facility, and is available for a range of business loan and trade products. To apply, you'll need to attain an EcoVadis ESG rating, which must be assessed on a yearly basis throughout the tenure of your facility in order to maintain your eligibility for the HSBC UK Sustainability Improvement Loan.

For more information about eligibility and applying for the HSBC UK Sustainability Improvement Loan, contact your Relationship Manager to find out if you meet the requirements.

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Disclaimer

By supplying these materials to you, HSBC UK is not providing confirmation that your business is eligible for such third party’s services nor should it be considered as a recommendation or endorsement to use those services. The information provided is general in nature and is not advice to take particular action.

HSBC UK does not warrant or represent that any information provided by the third party will achieve any sustainability goals you may have or establish or that such information will be suitable for your business.

It is your responsibility to make an independent assessment of the third party’s service and you should seek independent advice as required. HSBC UK does not receive a commission or any other payment from the third party in respect of any products or services they provide to you.

HSBC UK does not accept any liability for any direct or indirect losses incurred by your business because of using any service or product provided by such a third party.

If you choose to use the service or product provided by the third party, you may be asked by your HSBC representative to share the Scorecard from your EcoVadis ESG assessment with HSBC UK. You do not have an obligation to share your Scorecard with HSBC UK.

HSBC UK Bank plc. Registered in England and Wales (company number: 9928412). Registered Office: 1 Centenary Square, Birmingham, B1 1HQ. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 765112).

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