Collaboration is key for a sustainable future

• Sustainability is a collaborative space and sharing knowledge and best practices benefits all involved – including the planet.
• Being a business with green goals is increasingly important in terms of stakeholders, employees, attracting and retaining talent.
• Two top things to consider as you work toward your sustainability objectives are your supply chain and gathering data in an efficient way.

How to grow a business in a sustainable way is a topic that many business owners care about. And exploring solutions, for the present and for the future, is a vital conversation for every company.

HSBC invited experts in sustainability to discuss key issues around reaching green goals at this year’s Drive 2022 event.¹ Key issues for businesses to consider include how the global supply chain is reacting to the need to be sustainable, how to grow a business sustainably and how collaboration and learning from others is key when it comes to achieving green goals.

What’s more apparent than ever is how important it is for businesses to start their green journey right away.

And small and medium-sized enterprises have a crucial role to play in achieving a sustainable future. It is not just big business that needs to act.

Angie Hall, Head of Sustainable Finance, Commercial Banking, HSBC Canada, cites a HSBC report that shows that to achieve net zero by 2050, it will cost an estimated $100 trillion within the global economy.

“Our research shows that $50 trillion, so half of those funds, will be needed by SMEs globally,” she says.

“Those trends that have started at the largest end of the market are working their way through the entire economy, which is fabulous, because frankly, that is what we need to ensure that we're able to address climate change and get to a low-carbon future.”

Her experience includes being responsible for leading the sustainable finance proposition in Canada and executing on HSBC’s global commitment to provide at least USD 750 billion in sustainable finance by 2030.

She points out that disclosure requirements are not just for the largest publicly traded names, and that stakeholder expectation also plays a part.

“We're hearing from our small and medium-sized business clients that there are a wide variety of stakeholders that are also asking them for greater information about their ESG performance and strategy,” she says.

Many businesses are also noticing that employees care about values alignment between themselves and the company they are working for, she says. The private equity community are also asking questions about sustainability.

“There's a whole conversation right now about exit risk and buyer risk for companies that haven't considered ESG considerations both on the risk mitigation side but also on the opportunity side,” Angie says.

Another area where doing business with green goals in mind is becoming increasingly important is in terms of attracting and retaining talented employees.

Francois Gilles, President & Co-founder of Opsun Systems Inc., a company specializing in solar panel housing, says that at his company, employees have the satisfaction of feeling that they do their part for the world in their day-to-day work by reducing carbon emissions massively. When he advertises a role, he gets interest from skilled people with a good attitude. He puts this down to having good business practices and a good philosophy.

In the sustainability sector, collaborations and partnerships are key, says Angie.

“I think one of the exciting things about working in sustainability is genuinely how collaborative the space is,” she says.

“I think we have a strong recognition that this is a global problem and expands beyond our professional lives to our personal.”

She has noticed executives sharing best practices around ESG within business. Having these broad-based conversations are important, she advises, as is engaging with the thought leadership that's out there on key topics.

There is still a perception that there is a premium attached to being sustainable, but what is the true cost for companies?

“It's an investment, like R&D is, like product innovation is,” says Angie.

“I think it's really important to think about the long-term viability of your business model.”

Francois says that other costs and risks are involved if businesses do nothing – particularly the risk of climate change, and the impact on the planet and the economy.

“We want to give a future to our Mother Earth. We need to invest massively in renewable energy and sustainable companies, and in companies that provide sustainable products to reverse the pace of climate change,” says Francois. “Climate change’s impact on the economy could be disastrous and very costly for industry if we do nothing.”

All of these factors and more add up to sustainability making good business sense. So, what are your green goals for your business? And how can you make these happen?

To access capital for your transition contact our experts in sustainable finance or your relationship manager today.