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HSBC and The Warehouse Group: Delivering Sustainable Trade solutions
Assisting in opening a world of sustainable opportunities.
At HSBC, we partner with suppliers across your global network to help them prioritise sustainability as much as we do. This is the challenge HSBC partnered with The Warehouse Group to address.
Founded by Sir Stephen Tindall in 1982, The Warehouse Group (TWG) has grown into New Zealand's largest general merchandise retailer, with more than 200 stores, over 9,000 employees, and sourcing offices in China, Bangladesh and India.
“Our sustainability vision is to make sustainable living easy and affordable for everyone,” said Phil Cumming, General Manager Sustainability and Ethical Sourcing, The Warehouse Group.
“That means our customers can have confidence they're making informed, responsible purchasing decisions, and it means looking right through our entire supply chain, not just our own operations.”
In 2022, TWG set a number of sustainability goals, including cutting Scope 1 and 2 greenhouse gas emissions in line with climate science, and improving its products and redesigning packaging to help eliminate thousands of kilograms of non-recyclable plastics. Scope 3 emissions, from its supply chain and product use, were the biggest challenge for TWG to address.
Phil Cumming
General Manager Sustainability and Ethical Sourcing,
We can't achieve our vision without our suppliers on board, actively reducing their emissions and supporting our goals,” Cumming added. “That sparked conversations with HSBC about how they could help.
Rewarding supplier sustainability
The result was New Zealand's first Sustainable Supply Chain Finance Facility – which directly links a supplier's sustainability performance to their financing rate. The better a supplier performs against TWG's targets, the better their rate.
“Our role is to help engage suppliers and support actions that can reduce emissions over time,” said Nadia Ladak, Country Head of Global Trade Solutions, HSBC Australia and New Zealand.
Each supplier is scored across three areas: factory working conditions, whether their packaging is recyclable in New Zealand, and whether their products carry approved sustainability features. Suppliers are rated at least twice a year, and TWG's offshore sourcing teams talk directly with suppliers about how to improve their ratings, with results feeding straight back to HSBC. Since launching in late 2025, around 80% of TWG's direct source suppliers are enrolled with active scorecards.
Suppliers on the programme, who typically wait 60 to 90 days to be paid, can access early payment on approved invoices through a cloud-based platform. Those who improve their ratings receive preferential rates, bringing sustainability into everyday working capital decisions.
“We're a value retailer. Margin matters, for us and for our customers,” Cumming commented. “Rewarding suppliers for sustainability improvements with better rates isn't just good for people and planet. It makes business sense for everyone in the chain, including the customers who shop with us.”
What's next
TWG and HSBC are already planning the next step: adding a carbon metric to the scorecard, using the same model to help drive emissions reduction across the supply chain.
“We don’t see this as just a finance solution. It’s how we’re building a supply chain fit for the future,” said Phil Cumming, General Manager Sustainability and Ethical Sourcing, The Warehouse Group.
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