Accessing Sustainable Debt Finance
Tap into a growing market for sustainable debt finance by building ESG factors into treasury activities.
BACKGROUND
The role of financing in a low-carbon economy
Climate change is an urgent issue for the world. Creating a more sustainable global economy demands concerted effort, and businesses must rise to the challenge.
Major investments are needed to build resilient companies that are equipped for the future. Those investments must be financed – and financed sustainably.
Green bonds are part of the answer but they can’t do the job alone. We need to overhaul how we think about financing and start to bring environmental, social and governance (ESG) factors into ‘mainstream’ debt finance.
Bringing sustainability into the treasury function
Pricing risk is a vital part of making decisions about debt financing. All too often, though, ESG risks aren’t integrated into this analysis.
Adopting an integrated approach to financing enables you to manage risk while aligning treasury activities with your organization’s sustainability goals.
A sustainable financing framework can help you to embed ESG considerations into treasury activities, including debt products such as credit facilities, loans and leases.
By doing so, treasury teams can help their companies to:
- manage risks more effectively
- tap into investor interest in green products
- gain more access to capital
- build credibility with lenders and investors
What next
Our Essential Guide to Debt Finance offers advice on how you can include ESG factors in decisions about debt finance. It also includes practical examples that show how other companies have approached this. You can use our top tips and debt finance maturity map to help you take your next steps.
Below, you’ll also find links to other resources on how treasurers can adapt their work to respond to ESG issues.
