Sustainable finance

HSBC policies

HSBC assesses potential environmental and social risks when agreeing new business with customers, a process similar to analysing other types of business risk, such as credit risk. Australia has adhered to the Group standard for sustainability risk management since it was introduced in 2002 and as part of the HSBC Group, also adopted the Equator Principles in 2003.

HSBC in Australia also implements the Group's published policies for mining and metals, energy, chemicals, freshwater infrastructure sectors and forest land and forest products, covering the bank’s lending and other forms of financial assistance. They define activities we will not support (prohibited), and those we will only support if undertaken to a high standard (restricted) as well as certain other minimum standards of good practice. These policies are applied regardless of the value of the transaction.

Developing a low-carbon economy

Financing of renewable energy and efficiency technologies represents a major opportunity to work across our customer and product groups with new and existing clients.

HSBC has played a major role in financing climate infrastructure in Australia.

HSBC provided equity and debt funds, supported export credits and attracted wider investment for the construction of Australia's largest desalination plant in Victoria. The project will deliver up to 150 billion litres of water a year to major Victorian centres including a third of Melbourne's annual water supply.

HSBC Australia has also worked with leading renewable energy company, Roaring 40s to help finance its Woolnorth Bluff point and Woolnorth Studland Bay wind farm projects in Tasmania. HSBC was a lead manager for the deal which financed the existing Bluff point operations and the construction of the additional 75MW Studland Bay wind farm, adding to the growing renewable energy capacity in the Australian market.