The government has launched its Green Finance Strategy with an aim of increasing investment in sustainable projects and infrastructure.
The strategy is part of the UK’s goal to meets its recently announced target of reaching net zero carbon emissions by 2050.
The City must lead the way in securing a greener, more resilient and sustainable future for the UK, City Minister John Glen will said at yesterday’s launch.
Speaking at the third Green Finance Summit in London, the minister argued that financial services will have a bigger role to play than any other sector in tackling climate change.
As the world looks to shift to clean, resilient and sustainable economic growth, there is an opportunity to make London the go-to hub for green investment, the minister added.
The strategy sets out plans to increase investment in sustainable projects and infrastructure, and will also build on findings from the Task Force on Climate-related Financial Disclosures, led by former New York Mayor Michael Bloomberg and Bank of England Governor Mark Carney.
Through today’s plans and by putting clean growth at the heart of our modern Industrial Strategy
This includes setting expectations for publicly listed companies and large asset owners to disclose by 2022 how climate change risk impacts their activities.
Work with regulators will explore the most effective way of doing this, including whether mandatory disclosures are necessary.
Energy and Clean Growth Minister, Chris Skidmore, said: “As the first major economy to legislate to reach net emissions by 2050, green finance can play a crucial role in our mission to protect the planet while growing the economy.
“Through today’s plans and by putting clean growth at the heart of our modern Industrial Strategy we’ll continue to work with our leading financial services sector to drive even more ambitious action, showing the rest of the world that responsible business can be a win-win for the economy and the environment.”
HSBC’s green finance proposition
Following the strategy announcement, HSBC UK Commercial Bank has announced it is supporting British companies to meet their environmental and sustainability goals with the launch of a new green finance proposition.
The new range – available for small to medium enterprises (SME) through to large corporates – includes a Green Loan, a UK industry first Green Revolving Credit Facility (RCF) and a Green Hire Purchase, Lease and Asset loan.
Amanda Murphy, HSBC UK Head of Commercial Banking, said: “With the Government committing the UK to reach net zero carbon emissions by 2050, sustainability is increasingly important for companies of all sizes.
“We can now support their aspirations through our comprehensive Green lending proposition, which supports businesses as they pursue sustainable and environmentally-focused activities.”
Many stakeholders are now considering a company’s green credentials when making decisions about whether to work with, work for or invest in that company
HSBC UK Commercial Banking Head of Sustainable Finance Rob King added: “We have seen strong demand from businesses since launching the Green Loan pilot last year, so we are confident this suite of green finance products will support our customers to meet their sustainability agendas. Our customers are asking for more green finance products to support their specific ambitions.
“Our offering allows our customers to showcase their green credentials to stakeholders by demonstrating that a portion of their funding is ring-fenced for genuine environmental and sustainability activities.
“Many stakeholders are now considering a company’s green credentials when making decisions about whether to work with, work for or invest in that company.”