UAE-based Etihad has raised US$ 1.2bn in one of the world’s first sustainability and ESG linked loans. According to the airline, the terms of the loan are linked to multiple KPIs pertaining to environmental measures, such as CO2 emissions per revenue tonne kilometre. HSBC and First Abu Dhabi Bank (FAB) acted as strategic partners.
Interest in sustainable and “green” finance has grown significantly over the past couple of years. The lack of regulation and standardisation of reporting metrics has, however, made it difficult for investors to ascertain the true environmental impacts of their assets. Indeed, with greenwashing rife in the sector, regulators around the world are striving to establish frameworks.
How does ESG finance work in your sector? What would you like to see from regulation? Let us know in the comments or write to us at hello@ibexpub.media
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