HSBC Thailand sees significant opportunities in sustainable supply chain financial services in the Thai market, noting that financial solutions would give local small and medium-sized enterprises (SMEs) improved access to funding sources.
According to Giorgio Gamba, HSBC Thailand's chief executive, HSBC Thailand has already supported multinationals and large corporate companies in transitioning to sustainable practices in line with new international net-zero carbon emission standards.
The bank is now extending its support to Thai SMEs which are under corporate customers' supply chain businesses through its new financial service, Sustainable Supply Chain Finance.
According to Mr Gamba, this financial solution would aid corporations in driving sustainability initiatives and enhancing supply chain resilience. Given that around 80% of a company's carbon emissions stem from its supply chains, this innovation would potentially support the country in reducing carbon emissions, he said.
HSBC Thailand, a leading global financial institution and Thailand's first commercial bank, introduced this new financial service to the Thai market last month. The Sustainable Supply Chain Finance programme aims to help Thailand and local businesses achieve sustainability goals while decarbonising trade and supply chains.
Thuy Ngo, HSBC Thailand's head of global trade solutions, said the bank's global trade solutions business supports corporations to grow globally, make new connections, expand into new markets, and navigate an ever-changing landscape.
HSBC's trade operations currently provide clients with access to 90% of global trade flows. In 2023, the bank facilitated US$850 billion in trade. Clients benefit from HSBC's extensive network of 1.3 million businesses worldwide and long-standing relationships with suppliers and buyers, which help them find the right partners, manage risks, and access finance.
The key target segments for this new financial product include multinational firms, foreign direct investment businesses, large corporations involved in both inbound and outbound investments, trade finance customers, exporters and importers. HSBC also plans to extend this service to the supply chains of existing corporate customers.
"With this financial solution, SMEs who are under large companies' supply chains will have better access to the bank's working capital at lower interest rates compared to their own borrowings," said Ms Thuy.
"Thailand is committed to achieving carbon neutrality by 2050 and reaching net-zero greenhouse gas emissions by 2065. We understand our clients have evolving needs to unlock the transition to net zero. As it is estimated that 80% of a firm's overall carbon emissions come from within their supply chains, this sustainable supply chain finance solution is a great connector to help clients achieve their mission of driving sustainability and resilience in supply chain management."
