25 Jul 2024
Towngas becomes the first utility in Greater China to launch Green Supply Chain Finance Programme to promote ESG practices among suppliers and a sustainable supply chain
(25 July 2024) The Hong Kong and China Gas Company Limited (Towngas) and HSBC today signed an agreement under the newly-launched Towngas Green Supply Chain Finance Programme (the Programme). This initiative marks the first sustainability-linked supplier payment solution offered by a utility company in Greater China. Currently the Programme targets at Towngas’ suppliers across its appliance sales and and installation businesses. It aims to create favourable conditions for decarbonisation across its value chain by working with banks to offer suppliers more attractive borrowing rates if they meet specific ESG requirements. The Programme will strengthen Towngas’ ability to collect Scope 3 greenhouse gas emissions data, not only to fulfilling to the Enhancement of Climate-related Disclosures Under the Environmental, Social and Governance Framework recently published by the Hong Kong Stock Exchange. It also demonstrates Towngas’ leading position in environmental disclosure transparency.
The scheme allows suppliers to receive early payment for materials, services, or contracted works upon meeting preset sustainability performance indicators in emission data management and disclosure, and occupational health and safety. The initiative not only improves their cash flow cycles and financing capabilities, but also encourages them to integrate ESG practices more broadly into their operations. Towngas will also provide ESG trainings to the participating suppliers, jointly contributing to a sustainable, low-carbon future.
Mr Felix Lee, Head of Group ESG / Head of Group Corporate Affairs of Towngas, said, “Towngas is committed to implementing ESG practices across all aspects of our business, and actively working with partners upstream in the value chain to reduce carbon emissions. 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. Moreover, as ESG disclosure regulations evolve, we hope the Programme will lay an important foundation for collecting our Scope 3 greenhouse gas emissions data.”
Mr Aditya Gahlaut, Managing Director and Co-Head of Global Trade Solutions, Asia Pacific, HSBC, said, “As the world’s leading trade bank, HSBC plays a crucial role in helping to decarbonise cross-border trade flows and supply chains. Through the use of sustainable supply chain finance, we are able to have a positive impact across the full value chain. We promote ESG transparency, encourage disclosure and incentivise suppliers who manage and report their emissions. More of our corporate customers are now following this approach and we encourage large networks of suppliers to collect data and benchmark improvements in their scope 3 emissions.”
Towngas recognises the importance of building long-term, mutually beneficial relationships with suppliers. While ensuring all suppliers comply with the ESG requirements outlined in the Code of Practice for Suppliers, Towngas closely monitors ESG-related risks in the supply chain and works closely with suppliers to improve their ESG performance. Additionally, Towngas adheres to its
Sustainable Purchasing Policy, prioritising environmentally friendly products and services. Looking ahead, Towngas will continue to accelerate its green and low-carbon transformation, working together with stakeholders across the value chain to reduce corporate carbon footprints.
- END -
Press photo:
Photo 1:
Mr Edmund Yeung (2nd from left, back row), Executive Director & Chief Financial Officer of Towngas; Mr Felix Lee, Head of Group ESG / Head of Group Corporate Affairs of Towngas (1st from left, back row); Mr Aditya Gahlaut, Managing Director and Co-Head of Global Trade Solutions, Asia Pacific, HSBC (2nd from right, back row); and Mr Huifeng Zhang, Managing Director, Head of Corporate Sustainability, Asia Pacific, HSBC (1st from right, back row), witness the signing ceremony between Mr Raymond Lee (left, front row), Assistant General Manager – Corporate Supplies and Administration of Towngas, and Ms Anita Tsang, Managing Director, Global Banking, Hong Kong, HSBC (right, front row).
For media enquiries, please contact:
Ms Carmen Wong
Assistant Corporate Communications and ESG Manager
Tel: 2963 3416 / 6159 2614
Fax: 2516 7368
Email: wong.carmen@towngas.com |
|
Ms Julia Wong
Senior Corporate Communications Officer
Tel: 2963 3492 / 6064 0007
Fax: 2516 7368
Email: julia.wong@towngas.com |