Sustainability-linked credit scheme sealed
HSBC Philippines and Unilever Philippines recently announced the rollout of a sustainable supply chain finance program that pegs a supplier’s financing rate to its sustainability performance.
Through HSBC’s Sustainable Supply Chain Finance, Unilever Philippines’ suppliers can apply for improved financing from HSBC based on their sustainability ratings.
The program utilizes the benefits of typical supply chain finance with additional incentives to lower financing costs and, at the same time, support clients in achieving sustainability targets and transition to more sustainable operations.
“The procurement standards of large global multinational companies are a huge driver for sustainability, and this is why we are proud to partner with Unilever Philippines on this endeavor. In many industries, it is the company’s supply chain—rather than the company itself—that’s responsible for most environment impact and therefore, offers the great potential for sustainability improvements,” says HSBC Philippines CEO Sandeep Uppal.
“As a leading global trade bank, we understand the critical role of suppliers in achieving the sustainability and decarbonization targets of companies today. We aim to deepen collaboration with suppliers of large global corporations like Unilever, to enable further progress. This includes building partnerships with larger suppliers, to drive progress in shared supply chains through scaled initiatives and supporting suppliers at an earlier stage of emissions reduction with education and incentivization,” Uppal explains.
Sustainability is a key component of Unilever’s Growth Action Plan 2030 business strategy. Through strategic partnerships, the company aims to transform its business to deliver “best-in-class” performance while accelerating action in four priority areas: climate, nature, plastics and livelihoods.
“At Unilever, we believe sustainability drives business success. By working together with our financial partners, we’re enabling our suppliers to thrive while advancing our sustainability goals across climate, nature, plastics and livelihoods. This collaboration reflects our deep commitment to responsible growth and shared value across our ecosystem. Together with HSBC, we are making sustainable business a standard,” shares Rodrigo Rivero, Unilever’s Beauty & Wellbeing Greater Asia finance lead and Philippines head of finance.
HSBC aims to provide $750 billion to $1 trillion of sustainable financing globally.
