HSBC and PVH Corp. Partner on First Sustainable Supply Chain Finance Program Tied to Environmental and Social Factors
June 29 2022 - 11:00AM
Business Wire
HSBC Bank USA and PVH Corp. [NYSE: PVH] are today announcing the
first sustainable supply chain finance program that is tied to both
environmental and social objectives, and based on suppliers’
sustainability ratings.
The partnership with HSBC, the world’s leading trade bank,
provides PVH’s suppliers with access to critical funding based on a
set of science-based environmental targets, as well as a series of
social elements, including a healthy and safe working environment,
compensation and benefits, and employment issues, such as forced
labor, child labor, and harassment and abuse. The program
demonstrates PVH’s long-standing commitment to driving sustainable
business by continuously improving and protecting the environment
and human rights across their global supply chain.
According to recent research conducted by HSBC and Boston
Consulting Group (BCG), global supply chains need $100 trillion of
investment by 2050 if they are to achieve net zero emissions
targets – and as much as half of this is required by small- and
medium-sized enterprises (SMEs). Sustainable supply chain finance
is one way to help leading companies and key sectors like the
apparel industry ensure that progress is made to advance their
targets and commitments.
“We are proud to leverage our international and sustainability
expertise to help one of the world’s largest apparel companies make
progress against their ESG goals,” said Marissa Adams, Regional
Head of Global Trade and Receivables Finance for HSBC North
America,
“PVH's commitment to environmental stewardship and enhancing
human rights in our supply chain is core to our Forward Fashion
strategy. The availability of accessible financing is pivotal to
ensuring our suppliers are empowered to invest back into their
businesses and people, and contribute to our collective goal of
creating an innovative and responsible global supply chain,” said
Sarah Clarke, PVH’s Chief Supply Chain Officer.
Suppliers progress will be measured against PVH’s Human Rights
and Environmental Supply Chain standards and performance assessment
standards will be measured using industry-aligned tools. These
include the Social Labor Convergence Program (SLCP), which measures
a facility’s performance against human rights and labor standards,
and the Sustainable Apparel Coalition’s (SAC) Higg Facility
Environmental Module, which assesses environmental standards. HSBC
will act as a key financing partner in providing capital based on
these trusted standards and building on the bank’s established
expertise in sustainable supply chain finance programs that drive
progress.
“With this announcement, HSBC continues to show their leadership
in critically needed sustainable supply chain finance to fund the
textile, apparel and footwear industry's transition to net zero. We
estimate the total cost for the decarbonization of this industry to
be $1 trillion between now and 2050, the majority of which will go
towards capital investment in the supply chain. We applaud HSBC,
along with PVH, for forming this strategic partnership to finance
clean production at apparel manufacturing facilities,” said Lewis
Perkins, President of the Apparel Impact Institute.
About HSBC
HSBC USA Inc. ("HUSI") is a Maryland corporation and its
principal business is to act as a holding company for its
subsidiaries including HSBC Bank USA, N.A. Through HSBC Bank USA,
N.A. and its subsidiaries, HUSI offers a full range of traditional
banking products and services to individuals, including high net
worth individuals, small businesses, corporations, institutions and
governments. HSBC USA Inc. is a wholly-owned subsidiary of HSBC
North America Holdings Inc.
HSBC Holdings plc, the parent company of HSBC, is
headquartered in London. HSBC serves customers worldwide from
offices in 64 countries and territories in its geographical
regions: Europe, Asia, North America, Latin America, and Middle
East and North Africa. With assets of US$2,958bn at 31 December
2021, HSBC is one of the world’s largest banking and financial
services organizations.
About PVH
PVH is one of the world’s largest and most admired fashion
companies, connecting with consumers in over 40 countries. Our
global iconic brands include Calvin Klein and TOMMY HILFIGER. Our
140-year history is built on the strength of our brands, our team
and our commitment to drive fashion forward for good. That’s the
Power of Us. That’s the Power of PVH.
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version on businesswire.com: https://www.businesswire.com/news/home/20220629005733/en/
Media enquiries: Jack Mullin External Communications
Jack.f.mullin@us.hsbc.com Hannah Rubin communications@pvh.com
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