Hong Kong’s Towngas enlists HSBC, vendors in its efforts to cut supply-chain emissions
- Towngas will extend advance payments to suppliers with a lower interest rate through its tie-up with HSBC, provided they can meet the company’s ESG standards
Hong Kong and China Gas Company (Towngas) has launched a new scheme with HSBC to improve efficiency and reduce supply chain emissions to help the city reach carbon neutrality by 2050.
Hong Kong’s sole piped-gas provider will extend advance payments to suppliers with a lower interest rate through its tie-up with the city’s largest lender, provided they can meet the company’s environmental, social, and governance (ESG) standards, according to the company.
“By linking sustainability performance to payment services, we hope to take on a larger role in further encouraging suppliers to improve their ESG management standards and jointly promote the sustainable transformation of the industry chain,” said Felix Lee, the head of ESG and corporate affairs at Towngas.
The scheme primarily targets the company’s suppliers for sales and installation of stove products, representing 20 per cent to 30 per cent of suppliers’ gas purchases.
The programme allows companies with better ESG performance to receive more favourable discounts on the interest rate, Towngas said. However, the company did not provide further details.
The scheme will also help Towngas to better track and reduce its scope 3 emissions, which are attributed to supply chain partners.
