Clients will receive a quarterly, portfolio-level view of how their funds have been deployed to support green projects, and they will be able to manage their green account as simply as a regular deposit account.
David Koh, Head of Global Liquidity and Cash Management, HSBC Singapore, commented: “Feedback amongst clients looking to embark on the sustainability path is that they’re often uncertain how to best make a positive impact or unsure of directions to take. The Green Deposit Account enables companies to directly apportion cash savings into projects which directly benefit the environment. Given that liquidity is critical for business operations, this is a simple and immediate solution for any corporate to begin or widen their sustainability strategy.”
The need for investment in sustainable innovation and solutions is particularly necessary in Southeast Asia given the region’s susceptibility to climate change, the increased depletion of natural resources and increased level of natural disasters. For example, Lloyd of London estimates that USD$22.5 billion of GDP is at risk from flooding in Southeast Asian cities alone.2 If left unaddressed, the Asian Development Bank forecasts that climate change could reduce Southeast Asia’s GDP by 11% by the end of the century.3
Corporates across Southeast Asia are responding to the issue but are grappling with how to go about it. A recent HSBC survey4 revealed that sustainability is moving up the agenda of Singapore’s businesses, yet that they are simultaneously seeking support to navigate the options available to them given the lack of established metrics:
Diane S. Reyes, Global Head of Liquidity and Cash Management, HSBC, said: “As a Group we’ve made our sustainable finance goals clear, and Green Deposits are further proof of our desire to enable the transition to a low-carbon economy, and to help clients play their part too.”
In November 2017 HSBC made five sustainable finance commitments, including providing USD100 billion of sustainable financing by 2025. USD36.7 billion has so far been facilitated.6
1 Deposit Insurance Scheme: Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.
5 SDGs are 17 interconnected themes, adopted by all United Nations Member States in 2015, as a way to end poverty, protect the planet and achieve peace and prosperity by 2030.