Banks are also a valued source of funding and support for transitioning companies, particularly for fast-growth companies, with sustainable finance supporting broad transition plans (43%) and business transformation (39%).
Energy companies see funding for the transition as the most important service they receive from banks – and many expressed strong interests in wider sustainability-related financing, including trade instruments and sustainable supply chain financing in the near future. Non-financial services are also becoming more relevant: larger businesses are notably interested in exploring research, advisory services and the majority of business interested in new value-add transition tools.
“Financial institutions need to work in partnership with their clients to support the net zero transition and decarbonise their own portfolios, across financing, facilitation and risk mitigation,” explains Blyth.
She sees banks playing a larger role in the energy transition as businesses push towards their own net zero goals. “Banks will need to go beyond financing, but support businesses – particularly Small to Medium-sized firms – with value-add services, such as carbon calculators, disclosure services and supply chain integration through data services and certification.”
Partnerships are emerging as a crucial component of the sector, as firms, governments and banks highlight that collaboration is key. HSBC has committed to solving some of the hardest challenges in the sector with commitments in partnerships. For example, our involvement in Breakthrough Energy Catalyst, where we’ve invested US$100m to support the investment and scale-up of those really important climate technologies - direct air capture, clean hydrogen, long-duration energy storage, and sustainable aviation fuel – and more broadly supporting entrepreneurs solving for the transition.