HSBC China Launches Its First Agricultural Sustainable Supply Chain Financing Deal

China Securities Journal China Securities Network news (Reporter Chen Jiayi) On April 2, HSBC Bank (China) Co., Ltd. (hereinafter referred to as “HSBC China”) announced that the first deal of sustainable agriculture supply chain financing in the agricultural sector has been finalized. The financing solution provides a solution linked to sustainable performance for suppliers that are mainly farmers and rural cooperatives, in the upstream supply chain of a large multinational enterprise.

It is understood that the sustainable supply chain financing implemented this time is based on the concept of the internationally recognized “Sustainable Agriculture Initiative Platform.” As core buyers, the above-mentioned multinational enterprise will conduct a comprehensive, year-by-year evaluation of suppliers across multiple dimensions, including farmland plant cover rate, rotation of multiple crops, scientific use of pesticides, biodiversity, scientific use of fertilizers, and water-saving, among others. Based on the evaluation results, a tiered financing pricing will be offered to incentivize suppliers to improve their sustainable development performance, thereby helping the core buyer achieve its sustainable development goals.

Yuan Jiaqing, Managing Director of HSBC China Global Trade Solutions, said: “The integrated development of green finance and inclusive finance provides new momentum for exploring financial innovation. Empowering inclusive finance with a sustainable concept is precisely the significance of sustainable development supply chain financing in the agricultural sector. It not only addresses the financing difficulties faced by farmers and small and micro enterprises by relying on the credit of core enterprises under traditional supply chain financing models, but also promotes these enterprises to improve their sustainable development performance and strengthens their willingness to carry out environmental information disclosure.”