Sustainable lending, like sustainable investing, means that environmental, social, and governance (ESG) considerations play a central role in credit decisions. A sustainability-linked loan will typically focus on giving the borrower incentives to meet ESG performance objectives. The conditions of the loan will be tied to the achievement of ESG metrics such as carbon emissions or workforce and board diversity.
Retooling the bank for sustainable lending
October 22, 2021 -MINUTE READ