Sustainability-linked loans are not linked to specific projects. Borrowers are simply rewarded (or penalised) based on their performance on specific measures
, a mid-size Canadian consultancy, announced that it had amended the terms of a loan of $1.2bn. What made it unusual was that the interest rate hinges on hitting three targets. The company wants to reduce greenhouse-gas emissions from its operations, increase revenues from green sources, such as renewable energy, and raise the share of women in management. For every goal that it meets , its interest payments will fall by a set amount.
Sustainability-linked loans are not linked to specific projects. Borrowers simply get rewarded based on their performance on some environmental, social and governance measures. Green metrics, such as carbon emissions, are common. As with many forms of sustainable finance, greenwashing is a worry. One potential problem is the data on which the change in borrowing costs depend. Mike Wilkins ofGlobal, a credit-rating agency, says that the use of self-reported figures is a concern. Another option is to rely onscores calculated by specialist data firms and some credit-rating companies. Dozens of loans are based on these. But theEven with reliable data, it is unclear how ambitious the targets are.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Wait, My Student Loan Balance Went Up After 5 Years?A new report says that about half of student loan borrowers have a higher student loan balance after 5 years
Les mer »
1,700 health workers infected, first fatality in JapanAs more 'wartime' measures are implemented, here is the latest.
Les mer »
Coronavirus updates: 1,700 health workers infected, first fatality in JapanCOVID-19 updates: 1,700 heath workers infected, first fatality in Japan
Les mer »
COVID-19 updates: 1,700 heath workers infected, first fatality in JapanJUST IN: Japan confirms its first fatality from COVID-19, increasing the total number of deaths outside mainland China to three.
Les mer »
Zoë Kravitz 'Was In Tears' Over Dad Lenny's Speech at Her WeddingZoë Kravitz says Lenny Kravitz's speech at her wedding 'made the night.' ❤️
Les mer »
Nicole Kidman and Keith Urban Celebrate Valentine's Day at DollywoodJust when you think Nicole Kidman and Keith Urban couldn't be any more perfect, they go and post this ValentinesDay pic!
Les mer »