British banking giant HSBC has pledged to commit $1 billion to a green bond portfolio.
Announced last week, the British-based multinational banking giant pledged to commit $1 billion (USD) to a green bond portfolio that will be focused on investing in “high quality liquid assets in the form of green, social, or sustainability bonds.” Specifically, the proceeds of the portfolio will be used to fund the regular raft of green bond-funded projects — renewable energy projects, energy efficiency, clean transportation, and climate change adaptation projects.
“HSBC is committed to the green bond market, is a founding member of the Green Bond Principles and has been extremely active in supporting our clients in issuing green bonds,” said Spencer Lake, Global Head of Capital Financing. “HSBC understands that action to support the transition to a low carbon economy also brings social and economic benefits. We are building our business for the long term and over the last 10 years HSBC has developed its approach to climate change. ”
“The bank integrates climate policy, insight and education into the Group’s global businesses and operations. Sustainability underpins our strategic priorities and enables us to fulfil our purpose as an international bank and this is yet another commitment to evolving our sustainable business.”
HSBC has done its own fair share away from its business practices as well, specifically out of its research department.
A report published in April by HSBC’s Global Research division highlighted the risk of “stranded assets” in the fossil fuel industry, warning investors how they can best manage their funds to minimize the increasing risk of investing in fossil fuels.
In July, the HSBC Climate Change Centre of Excellence commissioned the Climate Bonds Initiative to investigate the global flow of climate-aligned bond financing. The study, Bonds and Climate Change: The State of the Market in 2015, confirmed that climate-aligned bonds had reached close to $600 billion by the halfway mark of 2015 (since 2005).