Product details

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Abstract

Technology and finance were evolving as the key priorities for government and businesses while taking action against climate change. Witnessing climate action as an essential strategy for businesses, in February 2024, HSBC, the biggest bank in the UK and Google, the global search engine giant, agreed to sign a partnership deal to invest USD1 billion in climate technology ventures by 2030. The partnership would offer venture debt financing options for companies participating in the Google Cloud Ready (GCR) -Sustainability initiative of Google Cloud. Under the GCR-Sustainability initiative, Google was planning to increase the number of partners by 2026. HSBC would provide financing opportunities to these companies. In addition, the partnership would strengthen HSBC's position in global finance and would also increase the customer numbers of HSBC. The GCR-Sustainability program mainly helped customers to achieve goals like carbon emissions reduction, supply chain sustainability, and ESG data processing. However, technological complexity, regulatory environment, data security, scaling up climate tech solutions, etc, were some of the key challenges for HSBC-Google's climate tech partnership. Would HSBC-Google partnership be able to foster climate tech innovations overcoming the challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
World/global

About

Abstract

Technology and finance were evolving as the key priorities for government and businesses while taking action against climate change. Witnessing climate action as an essential strategy for businesses, in February 2024, HSBC, the biggest bank in the UK and Google, the global search engine giant, agreed to sign a partnership deal to invest USD1 billion in climate technology ventures by 2030. The partnership would offer venture debt financing options for companies participating in the Google Cloud Ready (GCR) -Sustainability initiative of Google Cloud. Under the GCR-Sustainability initiative, Google was planning to increase the number of partners by 2026. HSBC would provide financing opportunities to these companies. In addition, the partnership would strengthen HSBC's position in global finance and would also increase the customer numbers of HSBC. The GCR-Sustainability program mainly helped customers to achieve goals like carbon emissions reduction, supply chain sustainability, and ESG data processing. However, technological complexity, regulatory environment, data security, scaling up climate tech solutions, etc, were some of the key challenges for HSBC-Google's climate tech partnership. Would HSBC-Google partnership be able to foster climate tech innovations overcoming the challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
World/global

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