HSBC and Walmart Join Forces on Sustainable Supply Chain Finance Programme
April 17 2019 - 10:00PM
Business Wire
HSBC and Walmart today announced the roll-out of a sustainable
supply chain finance programme that pegs a supplier’s financing
rate to its sustainability performance.
This global programme allows Walmart’s suppliers who demonstrate
progress in Walmart’s Project Gigaton or Sustainability Index
Program to apply for improved financing from HSBC based on their
sustainability ratings.
Project Gigaton is a Walmart initiative to avoid one billion
metric tons (a gigaton) of greenhouse gases from the global value
chain by 2030 through supplier commitments. Walmart’s
Sustainability Index Program gathers and analyses information
across a product’s life cycle, and was developed by The
Sustainability Consortium (TSC), a global organisation dedicated to
improving the sustainability of consumer products, to help Walmart
benchmark suppliers and encourage continuous improvement.
Natalie Blyth, Global Head of Trade and Receivables Finance,
HSBC, comments: “The procurement standards of a buyer are a huge
driver for sustainability, and this is why we are proud to join
forces with Walmart, the world’s largest retailer and a company
that shares our mission to build a more sustainable future. In many
industries it is a company’s supply chain – rather than the company
itself – that is responsible for most of the environmental impact
and therefore offers the greatest potential for sustainability
improvements.”
“At Walmart, we appreciate that the only way to a sustainable
future is through combined effort, and we share HSBC’s commitment
to empowering our suppliers on this journey. We want to encourage
companies throughout the supply chain to focus on sustainability,
as we have seen first-hand how this sparks innovation and generates
value. Investing in sustainability can not only lead to higher
productivity and cost savings for suppliers, but can also drive
their business growth as they make a positive contribution to the
world,” says Matthew Allen, VP Finance & Assistant Treasurer,
Walmart.
HSBC believes that supply chains are one of the most important
levers for banks and businesses to create a positive effect on the
world. According to McKinsey, a typical consumer company’s supply
chain creates far more social and environmental costs than its own
operations, accounting for more than 80% of greenhouse-gas
emissions and more than 90% of the impact on air, land, water,
biodiversity, and geological resources.1
Blyth adds: “Trade is a force for good, and trade finance has a
vital role to play if we are to achieve the UN’s Sustainable
Development Goals. Embedding sustainability in global supply chains
is not only beneficial for the environment and society, but also
for companies’ bottom lines. As the world’s leading international
bank, HSBC is actively building new partnerships and frameworks to
help deliver a more sustainable future for all.”
Being sustainable is seen as very important by businesses around
the world. According to the recent HSBC Navigator survey, 81% of
global companies say ethical and environmental sustainability is
important to them and 83% aspire to be a genuinely ethical or
environmentally sustainable company. Also, improving sustainability
outcomes is among the top three objectives for making supply chain
changes.
As a leading international bank, HSBC plays a unique role in
supporting a shift to sustainability in global supply chains. HSBC
is embedding sustainability into the products and services it
offers to customers, with the aim of supporting the sustainable
development of its customers’ supply chains. Nearly one-third of
businesses surveyed in the recent HSBC Navigator survey plan to
make sustainability-related changes to their supply chains within
the next three years.
Note to editors:
Please note the sustainability programmes and all ratings are
administered by Walmart. HSBC is not responsible for establishing
or maintaining such programmes or ratings.
For more information on Project Gigaton and Walmart’s
Sustainability Index Program, please visit:
https://www.WalmartSustainabilityHub.com/
HSBC Navigator: Now, next and how for
business
HSBC’s Navigator report comprises a global survey gauging
business sentiment and expectations on trade activity and business
growth from 8,650 decision-makers in 34 markets. Research was
conducted by Kantar TNS for HSBC between August and September
2018.
HSBC’s Navigator helps businesses capitalise on new
opportunities and make informed decisions for the future by
understanding the outlook for international trade.
The full report can be accessed here:
www.business.hsbc.com/trade-navigator
The Hongkong and Shanghai Banking
Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the
founding member of the HSBC Group, which serves our customers
through four global businesses: Retail Banking and Wealth
Management, Commercial Banking, Global Banking and Markets, and
Global Private Banking. The Group serves customers worldwide in 66
countries and territories in our geographical regions: Europe,
Asia, North America, Latin America, and Middle East and North
Africa. With assets of $2,558bn at 31 December 2018, HSBC is one of
the world’s largest banking and financial services
organisations.
1 McKinsey & Company, “Starting at the source:
Sustainability in supply chains”, November 2016
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version on businesswire.com: https://www.businesswire.com/news/home/20190417005947/en/
Media enquiries to:Alan
Ho+852 2822 4941alan.s.y.ho@hsbc.com.hkPaul Smith+44 20 7991
4867paul.a.smith@hsbc.comMatt Ward+1 212 525
1931matthew.m.ward@us.hsbc.com
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