HSBC launches sustainability improvement loan in Vietnam

By Bach Quang
Wed, May 28, 2025 | 6:15 pm GMT+7

HSBC has introduced its Sustainability Improvement Loan, a new financing solution tailored for businesses with annual turnover less than $550 million, in Vietnam, after launching it in 12 markets including the UK, Middle East, Hong Kong and Singapore last year.

Eligible businesses are required to complete an annual sustainability assessment throughout the duration of the loans. Illustration courtesy of the bank.

Eligible businesses are required to complete an annual sustainability assessment throughout the duration of the loans. Illustration courtesy of the bank.

The solution is designed to incentivize and support eligible businesses to accelerate their sustainability transition, the bank said in a release on Tuesday.

The loan is structured by linking the cost of financing to changes in borrowers’ sustainability assessments and ratings from EcoVadis, one of the world’s largest providers of business sustainability intelligence and ratings. EcoVadis evaluates companies based on four key areas: environment, labor and human rights, ethics, and sustainable procurement.

Eligible businesses are required to complete an annual sustainability assessment throughout the duration of the loans.

Businesses with score improvements may benefit from reduced interest rates/fees, while declines could result in increased rates/fees. This structure aims to encourage businesses to enhance their sustainability practices and performance.

Companies in the early stages of their sustainability journeys often find conventional sustainable finance beyond their reach, primarily due to limited resources for measuring and reporting their ESG performance. The Sustainability Improvement Loan is developed in response to this challenge.

Tim Evans, CEO and head of Banking at HSBC Vietnam, stated: "The launch of our Sustainability Improvement Loan enables HSBC Viet Nam to further build out our sustainable financing capabilities in the country and thereby providing businesses with a variety of financing options that they may need throughout their transition to net zero journeys."

"HSBC Vietnam is committed to developing and enhancing our sustainable financing solutions so as to support the country in its ambitions to transition to net zero by 2050," he added.

The Sustainability Improvement Loan is available to eligible HSBC customers, who seek new financing or looking to refinance existing facilities, in form of a number of financings such as revolving credit facilities, term loans and selected trade finance products.

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