Sustainability Meets Finance: The Rise of Sustainability Linked Loans
Eli Baier Eli Baier
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 Published On Apr 8, 2023

“Reduce carbon emissions by 25% by 2030, 100% of packaging recyclable, and return 100%+ of water used in drinks through water stewardship.” These are the sustainability goals of Coca-Cola. There are many large companies like Coca-Cola who have set aggressive sustainability targets for themselves. It is one thing to set a target, but now how do you follow through on that commitment? Many of the large manufacturing companies were built in an era when sustainability wasn’t even considered. How do you alter manufacturing processes, logistical operations, and day-to-day operations to be more energy efficient without diminishing the quality or quantity of your products? It is possible, but likely will take a large capital investment. One way companies are acquiring funds for these sustainability projects is by having their loans linked to their sustainability performance. That’s right - there are companies out there who have put their money where their mouth is. Variable interest rates on $10+billion loans linked to sustainability performance. This video gives a brief history of these sustainability linked loans (SLL) and will explore the challenges, opportunities, and benefits to the company and consumers.

In this video, we explore the concept of sustainability linked loans and how they are changing the world of finance. With the rise of ESG (environmental, social, and governance) investing, many companies (Mercedes-Benz, Coca-Cola, Walmart, Amazon, and Anheuser-Busch, etc.) are looking to finance their sustainability initiatives in a way that aligns with their corporate goals and values.

Sustainability linked loans are one such solution, allowing companies to access financing while also incentivizing them to meet certain sustainability targets. In this video, we'll take a closer look at how sustainability linked loans work, what makes them different from traditional loans, and the benefits they can offer both companies and investors.

We'll also discuss some real-world examples of companies that have used sustainability linked loans to fund their sustainability initiatives, and the impact these initiatives have had on their bottom line and their broader mission.

Whether you're an investor looking to learn more about sustainable finance, a business leader looking to finance your sustainability initiatives, or simply someone interested in the intersection of finance and sustainability, this video is for you. Join us as we explore the exciting world of sustainability linked loans and their potential to shape a more sustainable future.

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