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HSBC and Google Forge Alliance to Accelerate Climate Technology Financing

8th February, 2024| By Business Desk
HSBC Building London
HSBC Building London | Credit: Flickr
  • HSBC and Google have partnered to accelerate climate mitigation and resilience efforts through financing and support for companies in the Google Cloud Ready – Sustainability program.
  • The alliance aims to facilitate the growth of firms offering solutions for carbon emission reduction, sustainability enhancements, and climate risk analysis.
  • HSBC plans to deploy $1 billion in climate technology finance and facilitate connections between participating companies and its client base.
  • The partnership’s first venture debt financing arrangement involves LevelTen Energy, a company specializing in renewable transaction infrastructure.
  • This collaboration underscores the importance of technology and finance as crucial enablers of climate action, emphasizing the need for collaborative efforts to address global climate challenges.

HSBC, Britain’s largest bank, has forged a strategic alliance with Google to advance climate mitigation and resilience efforts by providing financial backing and assistance to firms participating in the Google Cloud Ready – Sustainability (GCR-Sustainability) program. This partnership aims to facilitate the growth of companies offering solutions geared towards addressing global climate challenges, as confirmed by executives from both organizations speaking to Reuters.

In this collaboration, HSBC will extend financing options to select companies identified by Google as part of its GCR-Sustainability initiative. The program serves as a validation platform for entities leveraging Google Cloud technologies to develop solutions focused on carbon emission reduction, sustainability enhancements across value chains, and the analysis of environmental, social, and governance (ESG) data to identify climate risks.

Justin Keeble, Managing Director for Global Sustainability at Google Cloud, emphasized the necessity for accelerated adoption of innovative technologies to support global decarbonization efforts. Natalie Blyth, Global Head of Commercial Banking Sustainability at HSBC, echoed this sentiment, highlighting the importance of collaborative partnerships and innovative financing mechanisms, especially amid declining investment trends in climate technology startups.

Under the terms of the partnership, Google Cloud will continue expanding the GCR-Sustainability program, while HSBC will explore financing opportunities for participating companies. The bank’s objective is to deploy $1 billion in climate technology finance, facilitating connections between these firms and HSBC’s client base to expedite their growth and the development of scalable solutions.

The partnership’s inaugural venture debt financing arrangement involves LevelTen Energy, a validated participant in the GCR-Sustainability program. LevelTen Energy specializes in providing renewable transaction infrastructure for stakeholders in the clean energy sector, having facilitated over $5 billion in clean energy transactions to date. Ross Trenary, Chief Financial Officer of LevelTen, expressed enthusiasm for the collaboration with HSBC, citing the potential for scaling their platform and expanding their global reach.

The alliance builds upon HSBC’s recent initiatives in the climate finance domain, including the launch of an HSBC credit risk advisory tool on Google Cloud and the establishment of HSBC Innovation Banking, a specialized banking proposition supporting innovation businesses and investors.

Overall, the partnership between HSBC and Google signifies a concerted effort to harness technology and finance as critical enablers of climate action. By leveraging each other’s strengths and networks, the two entities aim to accelerate the deployment of climate technologies and contribute towards achieving sustainability goals on a global scale.