HSBC Bank USA and PVH Corp. announced the launch of its sustainable supply chain finance program tied to environmental and social objectives and based on a suppliers sustainability ratings.
The partnership with HSBC gives PVH suppliers access to funding based on science-based environmental targets and social elements.
According to recent research conducted by HSBC and Boston Consulting Group (BCG), global supply chains need $100 trillion of investment by 2050 to achieve net-zero emissions targets, with small- and medium-sized needing as much as half of that amount.
“We are proud to leverage our international and sustainability expertise to help one of the world’s largest apparel companies make progress against their ESG goals,” said Marissa Adams, regional head, Global Trade and Receivables Finance, HSBC North America.
“PVH’s commitment to environmental stewardship and enhancing human rights in our supply chain is core to our Forward Fashion strategy. The availability of accessible financing is pivotal to ensuring our suppliers are empowered to invest back into their businesses and people and contribute to our collective goal of creating an innovative and responsible global supply chain,” said Sarah Clarke, PVH’s chief supply chain officer.
A supplier’s progress is measured against PVH’s Human Rights and Environmental Supply Chain standards, and performance assessment standards are measured using industry-aligned tools, including the Social Labor Convergence Program (SLCP) and the Sustainable Apparel Coalition’s (SAC) Higg Facility Environmental Module. HSBC will act as a key financing partner in providing capital based on these standards and building on the bank’s established expertise in sustainable supply chain finance programs.
“With this announcement, HSBC continues to show its leadership in critically needed sustainable supply chain finance to fund the textile, apparel and footwear industry’s transition to net zero. We estimate the total cost for the decarbonization of this industry to be $1 trillion between now and 2050, the majority of which will go towards capital investment in the supply chain. We applaud HSBC and PVH for forming this strategic partnership to finance clean production at apparel manufacturing facilities,” said Lewis Perkins, president, Apparel Impact Institute.