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HSBC Launches Industry Tie-Up To Help MMEs’ Climate Capability

HSBC Malaysia has launched a collaboration with the United Nations Global Compact Network Malaysia & Brunei (UNGCMYB) to strengthen the sustainability capability of Mid-Market Enterprises.

The HSBC initiative is a three-prong approach:

  1. Hosting a series of CEO roundtables to exchange best sustainability practices and strategies
  2. Work with UNGCMYB and Nottingham University Business School (Malaysia) to develop a CEO guidebook entitled ‘CEO Guide for Positive Climate Actions’ to help corporate leaders adopt climate actions within their own organisations
  3. HSBC Malaysia will also be providing 13 MME company executives the opportunity to attend a six-week ‘Sustainability Practitioner Certification Programme’ curated by UNGCMYB and Taylor’s University and Taylor’s University Sustainability Hub. This programme will provide leaders with an in-depth knowledge into ESG, Sustainability and CSR. In addition, they will gain the necessary skills to support their organisations in using sustainability as a competitive advantage and to learn the tools to overcome business sustainability risks.

These HSBC initiatives are part of HSBC’s MME Accelerator Programme which was launched in May in response to the challenges MMEs have in adopting emerging trends, such as digital and sustainability, which will be crucial to their ongoing commercial resilience.

However, while larger companies are ready or have already adopted sustainability practices and standards, most MMEs are only at the awareness-building phase. This poses another challenge to MMEs as their stakeholders – customers, other MNCs in supply chains, investors, employees – already expect them to have embedded sustainability in their strategy.

Karel Doshi, Head of Corporate, HSBC Malaysia said: “MMEs are the “engine room” of the economy, but they’re also the ‘sandwich class’: wedged between smaller companies who receive strong government and agency support and larger companies who have their own resources and the attention of financial partners “As a result, they often have to deal with meeting key challenges on their own, and a key one facing all companies is the adoption of ESG practices and risk management. By gaining an in- depth understanding of this, MMEs will be able to develop actionable and practical solutions for their organisation that will underpin their success. As the trusted advisor to businesses, we want to equip MMEs with the right tools to support them as they embark on their sustainability journey.

These initiatives that we have announced today are some of the ways we can help them.” Faroze Nadar, Executive Director, UN Global Compact Network Malaysia & Brunei said: “The financial services sector has a critical role to play in supporting sustainable business activities. Our collaboration with HSBC Malaysia will enable and equip corporates who are planning or are already transitioning to a low-carbon economy with the necessary tools and knowledge to start taking climate actions and to further mobilise their current efforts further.”

Seeing the need to help this growing segment, HSBC Malaysia’s MME Accelerator Programme seeks to enable MME customers to be future ready by providing them with prioritised senior coverage, tailored solutions and expertise to expedite growth, locally or internationally. MMEs are also provided with access to exclusive webinars and panel discussions with industry leaders around focus areas such as sustainability, digital innovation and business scalability.

HSBC Group aspires to be a leader in sustainable financing, managing and shaping the shift to a low-carbon world. We are growing our transaction finance portfolio to help our customers to reduce emissions and our ambition is to provide between $750billion and $1trillion in financing and investment to support this. In 2020, HSBC was named Best Bank for Sustainable Finance for the Asia, Middle East and Western Europe regions by Euromoney. HSBC Amanah also won the Islamic ESG Bank of the Year award as part of The Asset Triple A Islamic Finance Awards 2020. Additionally, HSBC Malaysia was recently awarded the ‘Market Leader for Trade Finance in Malaysia’ and the ‘Best Service for Trade Finance in Malaysia’ by Euromoney Magazine.