Companies are increasingly recognising that sustainable financing can help establish company commitments and policies on sustainability and drive accountability and delivery of existing commitments. "Treasury and finance teams in partnerships with sustainability teams, HR and business are working together to constructively challenge business operations, policies and areas of focus to embed sustainability into everyday business practices and operations, and also deliver a more resilient company and workforce." says HSBC Australia Head of Sustainable Finance Amanda Taylor.
A range of sustainable finance products are available. Sustainability-linked loans link the interest rate on the loan to the achievement of a company’s sustainability performance targets. Green loans are available for the financing or refinancing of eligible green projects. There are similar debt products, such as green, social and
To achieve real change through sustainable finance, companies need to develop robust frameworks and meaningful measures of success that can be independently verified to ensure the confidence of all stakeholders in the outcomes. “The momentum in ESG commitments and financing needs to be complemented by robust reporting and disclosures, governance and data integrity,” says Taylor.