HSBC & Google Join Forces to Bankroll Climate Tech Start-Ups
HSBC, one of global banking's leading lights, serves over 40 million clients across 64 nations. With its worldwide reach and a market cap of US$165bn, it is among the most influential organisations on the planet.
HSBC is now applying that influence to the climate fight. The British bank has earmarked a staggering US$1bn for burgeoning climate tech enterprises.
This initiative sees it joining forces with Google Cloud, aiming to furnish start-ups with tailored support essential for their development in the realm of climate tech.
Natalie Blyth, who spearheads Commercial Banking Sustainability at HSBC, says: “We’ve taken our partnership with Google Cloud to the next level.
“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,” adds Blyth.
Inside Google Cloud's sustainability programme
Google Cloud is an aggregation of cloud computing services which allows users to build on Google’s robust infrastructure.
Since its inception in 2008, the platform has become the backbone of nearly 90% of generative AI unicorns and over 60% of gen AI start-ups with funding.
- 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.
The GCRS programme highlights Google Cloud allies devoted to propelling businesses and governments towards their sustainability goals.
Through this initiative, partners such as Airbus and BlueSky Resources have devised solutions to simplify and enhance the adoption of Google Cloud technologies, including the notable Google Earth Engine.
A sustainable alliance
HSBC's relationship with Google Cloud now extends to offering banking support for climate tech firms within the GCRS programme. Announced in 2021, HSBC dedicates US$1bn to early-stage climate tech ventures.
Celine Herweijer, Group Chief Sustainability Officer at HSBC, notes that huge success of the initiative thus far. 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.”
Further deepening its engagement, HSBC now offers access to services and products tailored for the US and UK-based founders within the GCRS programme.
HSBC's approach to net zero
HSBC wants to reduce the financed emissions of its portfolio, with the aim of achieving net zero by 2050. The bank also hopes to achieve net zero across its own operations and supply chain by 2030.
To reduce emissions, it introduces tools like an electric vehicle cost comparison and home energy efficiency calculators.
Aligned with the EU Sustainable Finance Disclosures Regulation, HSBC offers a spectrum of ESG and Sustainable Investing funds. This collection includes the Global Transition Infrastructure Debt Fund, Floating Rate Infrastructure Strategy fund, and Climate Technology Venture Strategy fund.
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