HSBC unveils ‘green deposits’ fund in Thailand
HSBC bank and two of Thailand’s top corporations have launched the Kingdom’s first “green deposits” fund, in which proceeds are used for green projects such as energy efficient buildings and alternative energy infrastructure.
The corporations involved in the fund are Indorama Ventures, a petrochemical producer, and CP All, which owns the 7-11 convenience store chain in Thailand. Both are among the biggest contributors to the Kingdom’s plastic waste problems and are seeking ways to mitigate their negative impacts on the environment. Green deposits are one of several ways the companies are attempting to implement that.
“A green deposit is in a designated purpose account. Our commitment to our clients is the money must be invested in green projects, including renewable energy, energy-efficient projects, sustainable waste management or green transport, just to name a few,” Jonathan Teh, Head of Global Liquidity and Cash Management at HSBC Thailand, told the Bangkok Post.
“If you take the average corporation today, it may not have the means to invest in a green project itself because it does not have a mandate for it from investors.
We facilitate this investment, allowing a company to invest in a green project indirectly without having to administer it themselves,” Teh said.
A poll conducted by HSBC found that 92 percent of corporate executives in the region feel increasing pressure from their customers to become more environmentally sustainable. The poll surveyed 4,131 companies from 16 Asia-Pacific countries.
Teh said that an HSBC sustainability committee assessed which projects, programs or ventures were worthy of being deemed green enough for the fund to invest in.
Photo courtesy of: https://www.about.hsbc.co.th/hsbc-in-thailand