HSBC banks on Google Cloud to ensure its green investments reach only their intended beneficiaries, the green-tech startups, thereby contributing to its efforts to achieve its climate goals by 2030
Europe's largest bank, HSBC, is tying up with Google Cloud to ensure that its proposed $1 billion of green tech investments end up with the right startups and not in the hands of scammers.
The partnership reflects the growing urgency among corporations, including Google and HSBC, to face the realities of meeting their 2030 net zero climate goals on time. Investing in organisations with carbon-neutral business practices is one way to drive down indirect emissions.
The problem is that it's not always clear which companies are legit and which are engaged in greenwashing, or, in other words, playing a game of spreadsheet sustainability, claiming one thing and delivering another. For example, last year, it was reported that as many as 90 percent of carbon offsets are likely fictitious.
Google Cloud has been working on this problem for over two years. In mid-2022, the search giant launched Google Cloud Ready (GCR)—Sustainability—with the express purpose of vetting partners making carbon reduction claims.
Naturally, Google isn't just doing this for pure environmental reasons. To qualify, programme participants must meet several requirements, including submitting at least one case study, proving the service addresses real ESG goals in a repeatable way, and, crucially, that it runs on Google Cloud.
In addition to spotlighting its sustainable partners, Google's parent company has invested in some of them. Alphabet says it has invested billions of dollars into sustainability bonds to support climate projects. As part of the collaboration, Google plans to connect GCR sustainability partners with HSBC's climate tech team to explore debt financing.