Advancing Climate Solutions for a More Sustainable Future
Climate change is no doubt one of the biggest global crises that we are currently facing. As part of its ambitious climate strategy, HSBC has recently announced a partnership with World Resources Institute (WRI) and World Wide Fund for Nature (WWF) to unlock barriers to finance for companies and projects that tackle climate change.
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Climate change is impacting every country on every continent, disrupting economies and affecting lives. While the impacts of climate change will be felt globally, Asia is particularly vulnerable. According to HSBC Global Research, rising sea levels are inundating metropolises like Bangkok, Jakarta and Mumbai, while increasingly erratic weather jeopardises food security in the region. A 1°C increase in temperature reduces mainland China’s crop yield by 10%; while a 5-metre rise in sea levels will displace over 160 million people and slash GDP by 9%.
Ignoring the human impact of climate change will delay reducing inequality and achieving sustainable long-term growth in the region.
Recognising the Urgency of the Climate Challenge
Backed by US$100 million of philanthropic funding from HSBC over five years, the Climate Solutions Partnership aims to accelerate change in the short term, to help realise the Paris Agreement goals in the longer term. By bringing new solutions to commercial viability and scale, it aims to increase the rate of progress towards a 1.5 degree pathway to net zero.
Half of the total funding in this programme is allocated to projects across 14 markets in Asia Pacific, including Australia, India, Indonesia, Hong Kong, Japan, mainland China, South Korea and Vietnam.
“Keeping global temperature rises within safe limits requires new thinking and new technology. Asia is particularly vulnerable to climate change, but it is also where solutions are emerging fast. In partnership with WRI and WWF, we are proud to be able to support the search for more efficient ways to use energy, nature-based solutions and technologies to build a greener region,” says Peter Wong, Deputy Chairman and Chief Executive, The Hongkong and Shanghai Banking Corporation Limited.
Three focus areas of the partnership:
- Energy transition covers renewables and energy efficiency initiatives in sectors like textiles and healthcare, with programmes in Bangladesh, China, India, Indonesia and Vietnam.
Project Example - Pilot projects in China to help improve industry access to renewables and green technologies by working with multiple stakeholders to establish market mechanisms, policies and expertise to facilitate decarbonisation.
- Nature-based solutions protect and revitalise wetlands, mangroves and forests, and promote sustainable agriculture, while increasing social and environmental resilience in markets most at risk from climate change.
Project example - Partner with WWF to enhance the carbon sequestration of Hong Kong’s Mai Po Nature Reserve for climate change mitigation and develop sustainable fishpond communities and biomass textile innovations.
WWF-Hong Kong - Business innovation supports start-up firms and next-generation technologies which offer the potential to develop new approaches to cutting carbon emissions. Using WWF’s Impactio collaboration platform and joining hands with universities, research institutes as well as incubators, it will support business innovation to scale.
Project example - In collaboration with Hong Kong’s Business Environment Council, the programme supports local start-ups focused on climate innovation, providing business coaching and knowledge sharing to help them grow.
Building a more sustainable future
The Climate Solutions Partnership is part of HSBC’s ambitious climate strategy, announced in October 2020. HSBC aims to align its provision of finance to net zero by 2050 or sooner, in line with the Paris Agreement goals, and expects to provide up to US$1 trillion of finance and investment by 2030 to support its customers in the net zero transition. The bank has also pledged to work across the financial sector and beyond to accelerate solutions that will help avoid catastrophic climate change.