Sustainability for business in the UAE

Green Loans have characteristics aligned with the four pillars of the Green Loan Principles. The key pillar is that loans are made available to fully or partially finance/re-finance new or existing eligible Green Projects. These include, but are not limited to, renewable projects, green buildings, clean transport and energy efficiency.

Social Loans have characteristics aligned with the four pillars of the Social Loan Principles. The key pillar is that loans are made available for the finance or re-finance of eligible Social Projects. These include projects, but not limited to, essential services (such as healthcare, government services), affordable housing, food security and sustainable food systems and socioeconomic advancement and development.

Sustainability Linked Loans (SLLs) are aimed at supporting the borrower’s transition to a low-carbon economy through encouraging achievement of borrower’s sustainability goals. SLLs should comply with the five core pillars of the LMA’s Sustainability Linked Loan Principles (SLLPs).

Sustainability linked lending for Trade is where SLL covers both funded and unfunded trade products, which incentivise borrowers to achieve ambitious, pre-determined sustainability performance targets (SPTs).

Green Bonds are funded with proceeds allocated towards environmental projects, such as renewable energy, energy efficiency (such as energy storage, smart grids), pollution prevention and control, etc.

Sustainability Bonds are funded with proceeds allocated towards environmental and social projects.

Sustainability Linked Bonds are KPI-linked, with bond characteristics varying depending on whether the issuer achieves pre-defined Sustainability Performance Targets (SPTs) e.g., Scope 1,2,3 targets or % of waste reduction.

Social Bonds are funded with proceeds allocated towards social projects. For example, but not limited to, affordable basic infrastructure (e.g. clean drinking water, sewers, sanitation, transport), or access to essential services (e.g. health, education and vocational training, healthcare, financing and financial services).

Products in scope here include all unfunded trade products where there is an underlying facility, including Guarantee, Letter of Credit, Standby Letter of Credit (Except DC confirmation). The underlying activities supported by the facility must demonstrate clear environment and / or social benefits.

Transition Bonds proceeds supporting carbon intensive players that are actively decarbonising but have not yet reached the “greenness” that makes these efforts eligible to green bonds. Examples of projects include cnergy efficiency, carbon capture and utilization (CCU), recycled carbon fuels, renewable transport fuels of non-biological origin.

Green Trade Finance covers trade finance facilities (of funded products such as trade loans and receivables finance) which are made available to exclusively fund environmentally sustainable trade activities (e.g. purchase, supply or trading, which can be evidenced by underlying trade transaction documents) and adhering to the Green Loan Principles (GLP).

Sustainable Supply Chain Financing (SCF) is a proposition where HSBC can make early payments to customer’s suppliers on terms that consider the suppliers’ sustainability performance. It aims to service the client needs of ensuring sustainable sourcing and reducing the carbon footprint within their supply chain (e.g. scope 3 emissions).

HSBC Market & Securities Services covers a range of ESG capabilities to support your needs, including flow products, cash solutions, Global Research, bespoke indices, thematic investing, structure products, bond private placements, sustainability-linked hedges & derivatives, and securities services & reporting.

HSBC ESG Solutions supports clients with capital-market related transactions in the equity, debt and private markets e.g. M&A, IPO, ECA, etc.