Standard Chartered to open paperless ‘green branch’ in Hong Kong offering sustainable finance products, says local boss

Several of the city’s major lenders have been offering new products and services designed to support its aim of becoming a green financing hub

Green finance is ‘not just a gimmick any more’ but can bring business opportunities for banks, says analyst

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Standard Chartered’s chief executive in Hong Kong, Mary Huen Wai-yi. Photo: Jonathan Wong

Published: 8:30am, 9 Aug 2021Updated: 8:30am, 9 Aug 2021

Standard Chartered, one of three note-issuing banks in Hong Kong, plans to open a “green branch” this year in the latest move by a local lender to promote banking services that can help cut pollution.

The branch, whose location is not yet confirmed, will be fully paperless and will offer a wide range of bank products with a green concept, including deposits, loans and bonds that are tailor-made for environmentally friendly projects, according to Mary Huen Wai-yi, the bank’s Hong Kong chief executive.

It will also open up its green deposits to retail investors this year, having already made them available to companies, she said. The bank will only use the pool of funds held in green deposits to finance projects that can help reduce pollution, such as renewable energy installations, in line with both Hong Kong and mainland China’s carbon-neutrality targets.

Standard Chartered and its note-issuing rivals HSBC and Bank of China Hong Kong (BOCHK) are among the major lenders that have been offering new products and services designed to support the city’s aim of becoming a green financing hub.

The promotion of green finance in Hong Kong and in mainland China follows a pledge by President Xi Jinping in September last year to attain carbon neutrality by 2060. Hong Kong’s chief executive Carrie Lam Cheng Yuet-ngor announced in her 2020 policy address that the city would strive to achieve this target by 2050.

“With the promotion by the governments and the strong demand of customers, we believe in the huge opportunities arising from green finance businesses such as green bonds, green loans and green deposits. This is why we believe it would be a good idea to have a green branch,” Huen said during a media briefing.

“The green branch concept will hopefully help to bring awareness that companies and individuals can help to contribute to sustainability.”

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