HSBC today launched Green Deposits in the UAE, which will give corporate and institutional clients a mechanism to make USD and AED deposits in the UAE knowing their funds will be used to finance green initiatives.
Clients will receive a quarterly, portfolio-level view of how their funds have been deployed to support green projects, and they will be able to manage their green account as simply as a regular deposit account.
Philippe Robert, HSBC’s Interim Head of Global Liquidity and Cash Management in the Middle East, North Africa and Turkey (MENAT), said: “With the UAE pursuing an increasingly ambitious green agenda, our clients have been asking us for solutions that enable them to manage their capital in a more environmentally responsible way. While there is still a long way to go to meet critical global climate targets, launching Green Deposits in the UAE reflects the increasing awareness of sustainability and will help embed sustainable finance into corporate treasury management.”
HSBC has committed to become a net zero bank in its own operations by 2030, and to achieve net zero in its financed emissions by 2050 or sooner. In the UAE, HSBC is at the forefront of financing the transition to a low carbon economy by expanding its suite of green products for all client segments, from corporates and institutions through to entrepreneurs and individuals.
Alok Vijayvergiya, HSBC’s Regional Head of Liquidity and Investments in MENAT, said: “Corporate customers can now incorporate a sustainability agenda into their treasury activities with a simple deposit product, contributing to a greener and more resilient future for the UAE.”
The UAE recently submitted its second Nationally Determined Contribution (NDC) to the Secretariat of the UN Framework Convention on Climate Change, which includes a target of reducing greenhouse gas emissions by 23.5% compared to business as usual for the year 2030.
To help the UAE and economies across the region achieve their climate targets, in January 2021, HSBC formed a dedicated Sustainable and Transition Finance Team for the Middle East.
The Sustainable and Transition Finance Team is building on strong foundations, with HSBC seeing a six-fold increase in 2020 over the previous year in its sustainable and transition finance activity in the region. And, in 2019 and 2020, HSBC was named both the World’s Best Bank for Sustainable Finance and the Best Bank in the Middle East for Sustainable Finance by Euromoney magazine.