New White Paper by School of Business and SGS paves way for green supply chain finance

The HKBU School of Business and SGS, a global leader in testing and certification, have co-authored the White Paper on Green Supply Chain Finance to bridge the gap between sustainability goals and financial reality. The report was officially launched at the "2025 Manufacturing Digital Expo Sub-forum" in Shanghai this June, capturing immediate attention from government bodies, industry leaders and academic peers.

As global pressure for corporate environmental responsibility intensifies, the transition to sustainable practices presents a formidable challenge, particularly for small and medium-sized enterprises. These companies often lack the capital for green transformation, while financial institutions are hampered by inconsistent environmental data and a lack of clear evaluation standards.

Addressing these industry-wide pain points, the white paper introduces the "Supply Chain Emissions Reduction Financial Toolbox". A key architect of this framework was Professor Zhou Gaoguang, Associate Professor of the School of Business. As a co-author, his academic rigour and strategic insight were instrumental in translating complex industry challenges into an actionable model. The toolbox provides banks with tangible, data-driven metrics-such as carbon footprint, renewable energy usage, and CDP ratings, critical indicators of environmental transparency-to confidently assess and support sustainability-linked finance initiatives.

The research has proposed an integrated model that aligns policy objectives with financial innovation. It outlines tailored decarbonisation paths for different sectors and advocates for financing designs that empower smaller suppliers, such as linking preferential interest rates to verified sustainability improvements.

This joint initiative by SGS and the School, supported by the World Resources Institute, is grounded in extensive research, including in-depth interviews and survey data from key industry players.

The release of this white paper cements the School's position at the forefront of sustainable finance discourse. It demonstrates a commitment to forging global partnerships that translate academic theory into practical tools, and driving tangible environmental and economic progress across global supply chains.

For further information, please access the full white paper here (available only in Simplified Chinese).