HSBC & Google Commit US$1bn to Fund Climate Tech Start-Ups
HSBC is a heavyweight of global banking. With a clientele surpassing 40 million across 64 countries and a market valuation of more than US$165bn, the British bank is one of the most influential organisations in the world.
Now, in collaboration with tech giant Google, it is committing money to climate tech start-ups in an effort to capitalise on a new market destined for growth.
Pledging an eyewatering US$1bn, HSBC is ready to make a difference not only to small businesses, but to the world at large.
In a statement following the announcement of this initiative, Natalie Blyth, Global Head of Commercial Banking Sustainability at HSBC, expressed excitement about taking the bank's partnership with Google Cloud to new levels.
She said: “This collaboration means climate tech start-ups within Google Cloud Ready – Sustainability (GCRS) in the US and UK can now leverage HSBC's bespoke offerings, aimed at fuelling their growth aspirations. This expansion includes venture debt and facilitating networking opportunities, alongside crafting a directory of ESG service providers to guide our clients towards achieving net zero."
Exploring Google Cloud's sustainability drive
Google Cloud is an aggregation of cloud computing services which allows users to build on Google’s robust infrastructure.
It has been the foundation for almost 90% of AI unicorns in the GenAI sector and more than 60% of funded AI start-ups.
- A unicorn company is a privately-owned startup that has a valuation of over US$1bn and is not listed on the stock market. The term was coined in 2013 by Aileen Lee, the founder of Cowboy Ventures, and is a reference to the rarity of a company reaching this valuation.
GCRS shines a spotlight on selected Google Cloud partners. These are businesses, enterprises and organisations with a laser focus on achieving environmental objectives.
This vision has enabled collaborations with entities like Airbus and BlueSky Resources, yielding solutions that make Google Cloud technologies — including the revolutionary Google Earth Engine — more accessible and impactful.
HSBC & Google: collaborating for climate tech
HSBC's venture into backing Google Cloud's climate tech firms within the GCRS programme underscores the bank's commitment to the environment.
Celine Herweijer, HSBC's Group Chief Sustainability Officer, highlights the remarkable impact of this initiative. She says: “One year since announcing our US$1bn venture debt capital earmarked for climate tech start-ups in NYC, we’ve already allocated over half, spotlighting the pressing need and our plan to escalate our efforts.”
This initiative is not just about funding, it's about providing a comprehensive support system for US and UK-based innovators in the GCRS programme.
HSBC's approach to net zero
HSBC is approaching net zero in a holistic manner. The bank hopes to slash its Scope 3 emissions (those of businesses within its investment portfolio), reaching zero by 2050.
HSBC also wants to achieve net zero across its own operations and supply chain by 2030.
To facilitate this goal, the bank is rolling out innovative tools such as an EV cost analyser and home energy efficiency calculators.
In line with the EU Sustainable Finance Disclosures Regulation, HSBC's portfolio of ESG and Sustainable Investing funds is expansive, comprising the Global Transition Infrastructure Debt Fund, Floating Rate Infrastructure Strategy fund and Climate Technology Venture Strategy fund.
Group CEO Noel Quinn summarised HSBC's sustainable ethos — and its huge responsibility — succinctly when the bank's Net Zero Transition Plan was first unveiled in January 2024.
He said: “As one of the world’s largest international banks, HSBC is well placed to help support and finance the economic transformation required to reach net zero.”
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