Ramsay Health Care: Setting social target for our sustainability-linked loan
Sustainability-linked loans have become an established feature of loan markets around the world, and they are the second-biggest type of ESG debt by overall volume after green bonds. These loans are designed to boost sustainable economic activities and growth, with their interest rates tethered to the achievement of specific sustainability goals. These loans can enhance access to capital and also contribute to a broader positive impact. However, organizations may wonder how to establish clear targets for such loans.
Illustrating this, Ramsay Health Care, an Australian-based global healthcare provider, gives a practical example of how they set targets for a AU$1.5 billion sustainability-linked loan. This particular loan was linked to five sustainability performance indicators, aligning with the three pillars of Ramsay's sustainability strategy. The case study delves into two social performance indicators: mental health and sustainable supply chains.
To gain insights into Ramsay's approach in defining and setting sustainability performance indicators, their strategies for staying on course and reporting progress, and their subsequent steps along with valuable tips for others, download the case study.
