By Jon Hay
15 Apr 2021
Progress in sustainability-linked finance for banks has flipped from glacial to dizzying with Berlin Hyp’s €500m sustainability-linked bond this week.
Up to now, there had been no visible advance. Bankers scratched their heads over how to fashion suitable criteria that banks could link SLBs to, which would be material, relevant and ambitious, as demanded by the Sustainability-Linked Bond Principles.
Berlin Hyp found an answer. It will reduce the carbon intensity of all its lending by 40% in 10 years.
This is not just an answer, but the right answer. For years, climate-conscious investors have been asking banks to reveal the carbon footprints, not of their operations, which are trivial, but of the activity they finance with loans, bonds and equity deals.
21st Austria weekly - Verbund, Marinomed, Andritz, Pierer Mobility (25/03/2021)
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