Under the Paris Agreement, HSBC Bank has introduced home loans with discounts as well as incentives for clients procuring the properties certified via Leadership in Energy and Environmental Design.
HSBC bank has commenced issuance of initial green mortgages within the UAE territory, joining the global lenders offering sustainable finance merchandizes to align with their environmental, social and corporate governance pledges under the Paris Agreement.
The bank further added out in a statement issued on Sunday that, it has approved three mortgages for the clients procuring the properties within the Sustainable City Community within the Dubai territory only. The green home loans will be accessible for properties across the UAE territory only if they meet sustainability standards.
According to the report compiled from global consultancy leader KPMG, Lenders globally are progressively offering up green finance merchandizes to clients, specifically younger generations, who are selecting their banks backed upon their ESG credentials.
Head of wealth and personal banking at HSBC UAE, Daniel Robinson, stated out that, “Sustainable development is more important now than it’s ever been and it’s vital that banks support customers with competitively priced green finance and encourage more sustainable behaviours.”
He also further added up that, “Issuing the UAE’s first-ever green mortgages is a significant moment for the country’s housing and financial markets, and demonstrates the appeal of green retail finance to customers looking to make more sustainable decisions while appreciating the financial upside.”
The lender also further stated out that, “HSBC’s green mortgages are appropriate for assets that are either LEED-certified or if they meet comparable requirements.”
LEED (Leadership in Energy and Environmental Design) is a globally known green building certification system, offering third-party verification that a building was planned and built using sustainable strategies. It was established by the US Green Building Council.
Company director at Holo Mortgage Consultants in Dubai, Arran Summerhill, stated out that, “This is to benefit buyers of properties that are LEED-certified for the platinum or gold level and offers discounts and incentives for these loans. Sustainable City and Falcon City of Wonders would fall into this category. The developments are scarce at the moment, but it is a great initiative to reward people who are looking to buy in these areas.”
Faris Saeed, chairman of Diamond Developers, developer of The Sustainable City, stated out that, “We are proud to be the first development in the region to have our residents benefit from the issuance of HSBC’s green mortgage. With a commitment towards achieving net-zero carbon living, we have worked hard to set high standards of sustainability across all our communities.”
Globally, HSBC announced that it would align funded emissions from its portfolio of clients to the Paris Agreement goal of net zero by 2050 or sooner. HSBC also offers other justifiable finance merchandizes in the UAE, inclusive of greener car loans and sustainable investment fund possibilities, the statement said.
It also further was prompt to add that; HSBC witnessed out a six-fold growth in sustainable and evolution finance movement in the territory in 2020 comparatively with the preceding years.
The lender guesses to offer between $750 billion and $1 trillion in sustainable financing and investment by 2030 to provision clients as they switch to more supportable ways of doing business. The bank aims to be net-zero in its own operation by 2030.