HSBC and Google Cloud today announced the launch of a new partnership that aims to fund and support companies providing climate mitigation and resilience solutions.
The new partnership will connect HSBC's specialist climate technology financing team with companies in the Google Cloud Ready – Sustainability (GCR-Sustainability) validation program to explore venture debt financing options. Launching in 2022, GCR-Sustainability introduces companies to solutions available on Google Cloud to help companies and governments accelerate their sustainability programs and initiatives, including reducing carbon emissions, improving value chain sustainability and processing ESG data to help identify climate risks.
Justin Keeble, managing director of global sustainability at Google Cloud, said:
“The scale of the climate challenge demands a global ecosystem of technology providers that bring solutions that drive impact. That's why we launched our Google Cloud Ready – Sustainability ecosystem which – one year later – includes leading climate technology companies. Many of these partners need access to finance and we are excited to partner with HSBC to support businesses critical to climate action.”
According to the companies, the new partnership aims to achieve important objectives, including increasing the number of partners in the GCR – Sustainability Program over the next two years, and providing financing opportunities for HSBC, following last year's announcement of a goal to make available $1 billion to support early-stage climate technology companies around the world.
Natalie Blyth, Global Head of Commercial Banking Sustainability at HSBC, said:
“Radical change is needed to scale up new technologies that will play a critical role in supporting global decarbonization. Partnerships and innovative financing solutions are critical, especially during a time when investment in climate technology startups has declined. By combining financial support, cloud technologies and connectivity to partners across our combined footprint, we will help climate technology providers accelerate their growth and develop the solutions we urgently need at scale.”
With the launch of the new collaboration, HSBC and Google announced the partnership's first venture debt package, provided to LevelTen Energy, a renewable transaction infrastructure provider that connects and supports buyers, advisors and sellers of renewable energy. In addition to its GCR-Sustainability validation, LevelTen partnered with Google last year to develop a faster and easier RFP process for renewable energy purchase agreements (PPAs), accelerating deal negotiation and execution time in around 80% and allowing the acceleration of clean energy deployment.
Ross Trenary, Chief Financial Officer at LevelTen, said:
“We are proud to be a GCR-Sustainability validated company and look forward to working closely with the HSBC team. This venture debt package will allow us to scale our platform, which provides transaction infrastructure for buyers, sellers and financiers of carbon-free energy. HSBC’s global reach aligns with our international presence, while also giving us opportunities to connect with HSBC customers looking to achieve sustainability goals.”
