10pc of Towngas suppliers to seek green finance
Finance | Staff reporter 26 Jul 2024The Hong Kong and China Gas Company (0003) expects up to 10 percent of its suppliers will be the early-stage participants of its Green Supply Chain Finance Programme, the first sustainable payment solution offered by a utility company in Greater China.
Towngas and the Hongkong and Shanghai Banking Corporation have collaborated on this financing project.
By providing lower borrowing interest rates and other offers to qualified supplies, the project aims to promote environmental, social, and governance practices among suppliers and a sustainable supply chain.
Participating suppliers need to meet certain requirements, such as turning to natural gas production energy. They estimate that the receivable turnovers could be shortened to below 30 days or the interest payment for one week could be saved allowing them to upgrade equipment and enhance employee welfare.
Towngas expects 5 to 10 percent of the overall 1,500 active suppliers to join the program in the preliminary phase. The participation could later expand to cover more suppliers, such as energy producers.
While the company mainly targets suppliers in Hong Kong and the mainland, it acknowledges that those who have solid cash flows need not join the project, and many companies will consider the changes to interest rates.
Staff reporter
