A conversation with Steve Dunkley Regional Agriculture Director at HSBC UK North

HSBC UK has a dedicated agriculture team, with over 100 specialists who manage the day-to-day client relationships in that sector. Their work ensures that the bank can respond to changes in market requirements for agriculture. This could be driven by processors who are seeking to understand their scope 3 emissions, biodiversity impacts or water use on farm, or direct from farmers reacting to environmental or welfare related regulatory changes, and then how HSBC UK can relate this to tangible impacts on farm for customers.

“I grew up on a small, tenanted farm in the Yorkshire Dales, about 100 acres in total and a mix of tenanted land and annual grazing lets. I became a partner in the family business at just 20, which was quite unique. However, with challenges in beef prices from BSE in the late 90’s, I decided to pursue a degree in Land Management and Technology at Askham Bryan College, near York.”

After graduating in 2001, during the Foot and Mouth Disease outbreak, he took a short-term contract with DEFRA, which turned into a six-year tenure delivering grant schemes. This led to roles at Yorkshire Forward, English Farming and Food Partnership, and AHDB Beef & Lamb. In August 2022, he joined HSBC UK.

“I always wanted a career in agriculture, and to support the industry I grew up in and give something back. Whether working on the farm, in grants, or business advice, to now working in finance, I have always passionately supported people and businesses that want to grow and thrive within the sector.

“One of the things that attracted me to HSBC UK was that we used to bank with them when we were farming. When I saw the role and the size of the agricultural team, I thought -there is an organisation that is committed to the sector, something HSBC UK is proud of.”

HSBC UK offers a comprehensive range of traditional financial products, but also provides asset finance for equipment, from robotic milkers to tractors, to sustainability-linked finance, ensuring farmers have access to the latest technology to enhance efficiency and productivity.

“We are also creating more specialist products for agriculture too, to help support producers with their commitments to net zero farming or producing food more sustainably.”

Dunkley emphasises the business’ ability to support the agricultural sector is through its robust client relationships.

“The way we can influence practice on the ground is through our face-to-face relationships with clients. We make sure our team are not just knowledgeable about agriculture, but also about sustainable practices on farm. We are very focussed on ensuring our team, despite not being consultants, are equipped with enough technical knowledge to have a robust conversation with farmers, can understand what they are doing and can explore the right opportunities to help them.”

This commitment to knowledge exchange and learning is demonstrated through various initiatives, including collaborations with organisations like Andersons and Agrecalc, as well as SRUC. HSBC aims to achieve net zero in its global operations by 2030 and to assist its clients in reaching net zero by 2050.

A notable project with SAC Consulting at Duddo Estate in Northumberland exemplifies their dedication to sustainability.

“The project was looking to further build our awareness around the interactions between natural capital and commercial, day-to-day farming, increasing understanding of how farmers can baseline their natural capital and then measure and demonstrate improvement.

Though land, buildings and equipment are assets which can be more readily valued, habitats are a new and evolving territory especially given emerging nature markets. Given changing land-use, we were developing knowledge for HSBC UK staff, enabling them to better highlight the work being done on customer farms and fill the knowledge gap on a practical methodology for assessing and unitising natural capital assets.

“Being able to bring both, breadth of experience from applied research in SRUC as well as delivering advice to farmers on the ground is a huge advantage of this project.

It is not often that you have this end-to-end support from both research and practical consultancy working in harmony. The detailed evaluations and practical recommendations have provided a clear roadmap for other farms looking to enhance their natural capital and sustainability efforts. The project also successfully led to practical implementations at Duddo Estate, such as precision farming and renewable energy.”

Steve’s vision for the future of agriculture is centred on a successful and profitable industry recognised for its contributions to sustainability, biodiversity, and food production.

“I want individuals to feel proud to be part of an industry that not only generates profit but also positively impacts the environment. Agriculture, with the right support, has a crucial role in addressing global challenges, and we are committed to helping it lead the way in sustainable practices.”

In supporting farmers with tailored financial products and expert advice, HSBC UK is not just investing in agriculture but in the future of sustainable farming, ensuring that farmers have the tools and support they need to thrive.