HSBC UK is teaming up with Google to fund fast-growing climate technology companies responsible for delivering some of the world's most promising solutions to combat global climate change.
As part of the partnership, HSBC hopes to provide funding to companies selected by the search giant to join Google's cloud readiness and sustainability initiatives.
Program participants undergo a review process in which Google evaluates the quality and effectiveness of the technology developed, as well as its attractiveness to customers.
“HSBC financing helps companies accelerate progress towards the Sustainable Development Goals as they grow their businesses, and HSBC helps its customers access these innovations,” Google said.
HSBC said Google's review process complements the bank's assessment of potential new investments in debt transactions.
Promoting technologies that can help the business world quickly transition to a low-carbon economy was the theme of the COP28 climate summit in Dubai.
PwC says technology is a key part of most banks' efforts to drive global efforts to reduce emissions, even as financing for the sector declines sharply in 2023 as investors and lenders worry about the risks.
HSBC said it seeks to increase its chances of success by working with partners such as Google and recognizes that it bears credit risk, although this is part of the banking industry.
The partnership with Google comes a year after HSBC acquired the UK branch of Silicon Valley Bank in a deal brokered by the British government to prevent contagion in the world of startups.
The availability and impact of mortgage debt remains a major concern for policymakers, and Silicon Valley Bank is a major player in this space, although major lenders tend to stay away from the market due to capital risks.
Research by the International Energy Agency shows that nearly half of the emissions reductions needed to reach net zero by 2050 will depend on technologies not currently covered.
Six months after acquiring Silicon Valley Bank's UK unit, HSBC announced its target of financing $1 billion in climate technology companies by 2030 across a range of sectors, including electric cars, battery storage and sustainable food systems.
HSBC is well above its internal targets for this target. The bank aims to accelerate its goal of getting 1.3 million customers to net-zero emissions by 2050 through its partnership with Google and the launch of HSBC's innovative banking services.
The 30 companies participating in the program offer cloud-based technology solutions designed to help customers reduce their carbon emissions by processing data related to sustainability risks.
HSBC has a long-standing commitment to facilitating connections between its existing clients and climate technology companies to ease the transition.