HSBC, the British multinational investment bank, has launched Green Deposits for its corporate and institutional clients in UAE, which will allow them to make dollar and dirham deposits in the country to finance green initiatives.
With this program, HSBC became the first bank in the UAE to offer such a facility as economic social governance (ESG) principles are more widely followed by businesses in the country.
Under the Green Deposits scheme, the clients will receive a quarterly, portfolio-level view of how their funds have been deployed to support eco-friendly projects and they will be able to manage their green account as simple as a regular deposit account.
“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.”
The UK bank has already committed to achieve net-zero in its operations by 2030 and 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.
Earlier this year, HSBC formed a dedicated Sustainable and Transition Finance Team for the Middle East to support the countries and economies across the region to achieve their climate targets.
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.”
Recently, UAE 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 percent compared to business as usual for the year 2030.