CLP Power and HSBC launch first ESG-linked supply chain finance deal

ESG-linked terms tie funding to emissions metrics.

CLP Power Hong Kong and HSBC launched a Sustainable Supply Chain Finance Programme to provide ESG-linked financing to local suppliers.

The programme integrates CLP Power’s sustainable procurement framework with HSBC’s financing solutions to link funding terms to suppliers’ environmental, social, and governance performance.

Under the programme, participating suppliers are assessed against ESG criteria to identify improvement areas, with a focus on measuring, reporting, and reducing carbon emissions, the companies said.

Suppliers that meet predefined ESG performance indicators based on third-party sustainability scoring may access more flexible payment arrangements at preferential rates through HSBC.

The programme includes a digital platform to manage applications, documentation, tracking, and reporting between CLP Power and its suppliers.

CLP Power said the framework is intended to support suppliers at different stages of sustainability adoption whilst improving resilience across the supply chain.

HSBC said the initiative marks CLP Power’s first sustainable supply chain finance programme and forms part of broader efforts to embed sustainability considerations into corporate supply chains.