HSBC Sustainability Improvement Loan

The HSBC Sustainability Improvement Loan allows businesses like yours to demonstrate your commitment to sustainability while enjoying financial benefits from the progress you make.¹ Whether you are just starting your sustainability journey or already enhancing your practices, this loan is designed to support your goals.

The loan is based on the EcoVadis rating, which serves as the key performance indicator to assess your company’s sustainability practices. Your EcoVadis rating will be reviewed annually, and the improvements in the EcoVadis score can lead to pricing adjustments, as outlined in the important notice, offering financial benefits for your progress. ¹

EcoVadis is a globally recognised platform that provides independent sustainability ratings, assessing companies’ environment, social, and ethical practices. The EcoVadis rating offers a clear, standardised way for businesses to track and improve their sustainability performance, providing transparency and demonstrable evidence in their sustainability journey.

EcoVadis benchmark companies’ sustainability performance against their peers by evaluating their policies, actions and results. The assessment includes input from third-party professionals and external stakeholders, ensuring a comprehensive view of sustainability practices. Companies are assessed across four key areas: environment, labor and human rights, ethics, and sustainable procurement. ^{2 & 3}

Are you ready to align your sustainability initiatives with financial benefits? Get in touch with us today. Whether you have an EcoVadis rating or not, we can support you. We will connect you with the EcoVadis team to obtain your sustainability assessment or, if you already have a rating, we will work with you to provide financial solutions that aligns with your sustainability goals.³

1. Changes in your EcoVadis rating during the annual reporting period can affect the margin applied to your facility for the year after. Significant improvements may lead to a reduction in the interest rate. ⁴

2. All information related to EcoVadis is sourced from their website. For more details, please visit https://ecovadis.com/. EcoVadis Cost vary depending on business size and complexity of assessment. You can see the latest EcoVadis price structures here or by contacting EcoVadis directly. Please note, by engaging with EcoVadis (either by clicking on the link or contacting them separately), you understand and acknowledge that:

• By supplying these materials to you HSBC is not providing confirmation that your business is eligible for such third party’s services nor should it be considered as a recommendation or endorsement to use those services. Information provided is general in nature and is not advice to take any particular actions.
• HSBC does not represent or warrant that any information provided by the third party will achieve any sustainability goals you may have or establish or that such information will be suitable for your business.
• It is your responsibility to make an independent assessment of the third party’s service (including any of their terms and conditions to be entered into with you) and you should seek independent advice as required. HSBC shall not be responsible or liable to you or to any person or entity for any damages or loss that may be alleged or incurred as a result of using any service or product provided by the third party.

3. HSBC utilises the EcoVadis rating as key performance indicator in our Sustainability Improvement Loan offering. However, the responsibility for conducting and assessing the rating is solely with EcoVadis, and HSBC does not take responsibility for accuracy or outcomes of these assessments. Businesses will be asked to share their EcoVadis rating with HSBC as part of the credit approval process. Any product and service related to the HSBC Sustainability Improvement Loan is subject to our eligibility criteria, terms and conditions, including all relevant onboarding checks, customer due diligence and credit approvals. These terms do not apply to our personal banking accounts, which are governed by separate conditions.

4. This includes Revolving and Term loan facilities and all funded/unfunded trade products (except Supply Chain Finance). For unfunded products, pricing margin adjustment (+- 5bps) will be discussed with your relationship manager.