HSBC (00005) promotes sustainable development improvement loans in Hong Kong.

HSBC announced the launch of Sustainable Improvement Loans in Hong Kong, specifically designed for medium and small enterprises. The financing cost is linked to the sustainable performance of the businesses. HSBC is introducing new initiatives to provide customers with more diversified choices and further promote Hong Kong as an international sustainable financial center. The interest rate of Sustainable Improvement Loans is tied to the performance of the enterprise, and will be adjusted according to the customer's sustainable development assessment and EcoVadis rating. EcoVadis is one of the world's largest sustainable development rating agencies, focusing on environmental, labor and human rights, ethical and sustainable procurement criteria to evaluate business performance. After approval for Sustainable Improvement Loans, enterprises are required to undergo annual sustainability assessments throughout the loan period. If the enterprise achieves preset targets and improves its rating, there is a chance to receive more favorable loan rates. If the rating of the enterprise decreases, the interest rate may increase accordingly.