Total company ESG approach essential as bonds tackle inequality

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By Mike Turner
22 Apr 2021

Spanish electrical utility Iberdrola issued sustainability-linked debt this week with a key performance indicator linked to the theme of social equality. This growing trend in the loan market is expected to make the leap to corporate bonds, pushing investors to put more focus on a company’s entire ESG performance, rather than the narrow KPIs of one deal.

Iberdrola’s €2.5bn syndicated loan carries two KPIs; the first is a traditional emission reduction metric, while the second pledges to increase female leadership representation at the company by 25%.

Other loan users, including investing behemoth BlackRock and private equity firm Carlyle Group, have signed billions of dollars in loans linked ...

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