HSBC, Google collaborate to boost up to USD 1bn climate tech financing

Jakarta – HSBC, Britain’s largest bank, has announced a strategic partnership with tech giant Google to promote the financing of burgeoning climate technology companies, Reuters News Agency reported. This initiative aims to advance solutions to combat global climate change, a priority that has garnered international attention.

Last year, only six months after HSBC bought the UK unit of tech lender Silicon Valley Bank (SVB), the bank HSBC said it would aim to provide USD 1 billion in funding to climate tech companies across a range of sectors by 2030.

According to executives from both companies, the collaboration will focus on providing financial support to select companies participating in Google’s Google Cloud Ready-Sustainability program. This program emphasises the validation and assessment of emerging technologies, ensuring they meet stringent quality, efficacy, and customer engagement criteria.

Justin Keeble, Google Cloud’s Managing Director for Global Sustainability, told Reuters that there is urgency for companies to expedite their sustainability objectives amidst prevalent confusion about practical solutions. “HSBC’s finance will help those partners scale their businesses, and then HSBC will help customers access all this innovation,” he said.

Google’s meticulous due diligence process offers a layer of reassurance, complementing HSBC’s evaluation of potential venture debt deals, explained Martin Richards, HSBC’s Global Head of Climate Tech and Sustainable Finance. Such collaborative efforts are essential, especially as the finance sector witnessed a decline in investments in 2023, according to PwC data, amid concerns over risk.

HSBC aims to leverage this partnership to meet and exceed its funding targets, contributing significantly to the global effort to reduce carbon emissions. The collaboration also facilitates connections between HSBC customers and climate tech firms, enhancing the transition to greener alternatives.

The announcement included HSBC’s first venture debt deal under this partnership with LevelTen Energy, a renewable energy marketplace company. Although financial details remain undisclosed, this deal marks a significant step forward in the combined efforts of technology and finance to address climate challenges. (nsh)

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