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HSBC and Walmart Join Forces on Sustainable Supply Chain Finance Programme

NEW YORK & HONG KONG–(BUSINESS WIRE)–HSBC and Walmart today announced the roll-out of a sustainable supply
chain finance programme that pegs a supplier’s financing rate to its
sustainability performance.

This global programme allows Walmart’s suppliers who demonstrate
progress in Walmart’s Project Gigaton or Sustainability Index Program to
apply for improved financing from HSBC based on their sustainability
ratings.

Project Gigaton is a Walmart initiative to avoid one billion metric tons
(a gigaton) of greenhouse gases from the global value chain by 2030
through supplier commitments. Walmart’s Sustainability Index Program
gathers and analyses information across a product’s life cycle, and was
developed by The Sustainability Consortium (TSC), a global organisation
dedicated to improving the sustainability of consumer products, to help
Walmart benchmark suppliers and encourage continuous improvement.

Natalie Blyth, Global Head of Trade and Receivables Finance, HSBC,
comments: “The procurement standards of a buyer are a huge driver for
sustainability, and this is why we are proud to join forces with
Walmart, the world’s largest retailer and a company that shares our
mission to build a more sustainable future. In many industries it is a
company’s supply chain – rather than the company itself – that is
responsible for most of the environmental impact and therefore offers
the greatest potential for sustainability improvements.”

“At Walmart, we appreciate that the only way to a sustainable future is
through combined effort, and we share HSBC’s commitment to empowering
our suppliers on this journey. We want to encourage companies throughout
the supply chain to focus on sustainability, as we have seen first-hand
how this sparks innovation and generates value. Investing in
sustainability can not only lead to higher productivity and cost savings
for suppliers, but can also drive their business growth as they make a
positive contribution to the world,” says Matthew Allen, VP Finance &
Assistant Treasurer, Walmart.

HSBC believes that supply chains are one of the most important levers
for banks and businesses to create a positive effect on the world.
According to McKinsey, a typical consumer company’s supply chain creates
far more social and environmental costs than its own operations,
accounting for more than 80% of greenhouse-gas emissions and more than
90% of the impact on air, land, water, biodiversity, and geological
resources.1

Blyth adds: “Trade is a force for good, and trade finance has a vital
role to play if we are to achieve the UN’s Sustainable Development
Goals. Embedding sustainability in global supply chains is not only
beneficial for the environment and society, but also for companies’
bottom lines. As the world’s leading international bank, HSBC is
actively building new partnerships and frameworks to help deliver a more
sustainable future for all.”

Being sustainable is seen as very important by businesses around the
world. According to the recent HSBC Navigator survey, 81% of global
companies say ethical and environmental sustainability is important to
them and 83% aspire to be a genuinely ethical or environmentally
sustainable company. Also, improving sustainability outcomes is among
the top three objectives for making supply chain changes.

As a leading international bank, HSBC plays a unique role in supporting
a shift to sustainability in global supply chains. HSBC is embedding
sustainability into the products and services it offers to customers,
with the aim of supporting the sustainable development of its customers’
supply chains. Nearly one-third of businesses surveyed in the recent
HSBC Navigator survey plan to make sustainability-related changes to
their supply chains within the next three years.

Note to editors:

Please note the sustainability programmes and all ratings are
administered by Walmart. HSBC is not responsible for establishing or
maintaining such programmes or ratings.

For more information on Project Gigaton and Walmart’s Sustainability
Index Program, please visit: https://www.WalmartSustainabilityHub.com/

HSBC Navigator: Now, next and how for business

HSBC’s Navigator report comprises a global survey gauging business
sentiment and expectations on trade activity and business growth from
8,650 decision-makers in 34 markets. Research was conducted by Kantar
TNS for HSBC between August and September 2018.

HSBC’s Navigator helps businesses capitalise on new opportunities and
make informed decisions for the future by understanding the outlook for
international trade.

The full report can be accessed here: www.business.hsbc.com/trade-navigator

The Hongkong and Shanghai Banking Corporation
Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding
member of the HSBC Group, which serves our customers through four global
businesses: Retail Banking and Wealth Management, Commercial Banking,
Global Banking and Markets, and Global Private Banking. The Group serves
customers worldwide in 66 countries and territories in our geographical
regions: Europe, Asia, North America, Latin America, and Middle East and
North Africa. With assets of $2,558bn at 31 December 2018, HSBC is one
of the world’s largest banking and financial services organisations.

1 McKinsey & Company, “Starting at the source: Sustainability
in supply chains”, November 2016

Contacts

Media enquiries to:
Alan Ho
+852
2822 4941
[email protected]

Paul
Smith
+44 20 7991 4867
[email protected]

Matt
Ward
+1 212 525 1931
[email protected]

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