Small and medium enterprises (SMEs) with certifications from the Singapore Green Labelling Scheme (SGLS) and ECO Certifications are eligible to apply for financing with HSBC SME Green Loan, announced on 19 March 2020 by the Singapore Environment Council (SEC).
This is the first-ever Green loan in Singapore to draw on existing eco-labelling certifications instead of the externally reviewed bespoke Green Finance Frameworks typically associated with large corporates, filling a gap in the Green financing for SMEs by reducing time, complexity and cost.
“SMEs can now look forward to access Green finance to transform their business models and focus on environmental sustainability. This should spur Green innovative products amidst the pending gloomy global recession,” said Isabella Huang-Loh, Chairman, Singapore Environment Council.
The loan provides an incentive for all businesses to adopt sustainable approaches. SEC can also help SMEs with a suite of available internationally recognised programmes by United Nations Environment Programme (UNEP) and Global Ecolabelling Network (GEN).
Bearers of SEC’s Green label can apply for the loan for eligible Green projects that may include purchase of Greener equipment; development or production of sustainable or recycled products; construction or renovation of Green buildings; and the purchase of energy-efficient fittings.
The SGLS has certified more than 830 companies across 3,800 industrial and consumer products and is accredited to international ISO 14024 and ISO/IEC 17065:2012 standards.
By utilising pre-existing Green labelling certifications from established organisations such as SEC in assessment criteria, SMEs can shorten the process and the cost associated with loan assessments.
– Construction+ Online