Accessing Sustainable Debt Finance

Tap into a growing market for sustainable debt finance by building ESG factors into treasury activities.

BACKGROUND

The role of financing in a low-carbon economy

Climate change is an urgent issue for the world. Creating a more sustainable global economy demands concerted effort, and businesses must rise to the challenge.

Major investments are needed to build resilient companies that are equipped for the future. Those investments must be financed – and financed sustainably.

Green bonds are part of the answer but they can’t do the job alone. We need to overhaul how we think about financing and start to bring environmental, social and governance (ESG) factors into ‘mainstream’ debt finance.
 

Bringing sustainability into the treasury function

Pricing risk is a vital part of making decisions about debt financing. All too often, though, ESG risks aren’t integrated into this analysis.

Adopting an integrated approach to financing enables you to manage risk while aligning treasury activities with your organization’s sustainability goals.

A sustainable financing framework can help you to embed ESG considerations into treasury activities, including debt products such as credit facilities, loans and leases.

By doing so, treasury teams can help their companies to:

  • manage risks more effectively
  • tap into investor interest in green products
  • gain more access to capital
  • build credibility with lenders and investors

What next

Our Essential Guide to Debt Finance offers advice on how you can include ESG factors in decisions about debt finance. It also includes practical examples that show how other companies have approached this. You can use our top tips and debt finance maturity map to help you take your next steps.

Below, you’ll also find links to other resources on how treasurers can adapt their work to respond to ESG issues.

GUIDANCE AND OTHER RESOURCES

Essential Guide to Debt Finance

The A4S Essential Guide to Debt Finance has been created through extensive interviews with lenders and debt investors to understand how ESG is currently considered in debt finance decisions, and how the market is expected to shift in the future.

TOP TIPS FOR TREASURY TEAMS

We have put together our top tips and resources for implementing a sustainable finance framework.

DEBT FINANCE MATURITY MAP

Our maturity map will help you to get started, by understanding your current position and the road to where you want to be.

Learn from others

WEBINAR ON EMBEDDING ESG INTO TREASURY TEAM ACTIVITIES

This joint A4S and IIRC webinar is a comprehensive look at how treasury teams can integrate ESG factors and includes a case study from Pennon Group

PODCAST ON GREEN FINANCE

A podcast from the Association of Corporate Treasurers on green finance and how the market is shifting – featuring our Executive Chair, Jessica Fries

ARTICLE ON WHAT TREASURERS CAN DO TO FIGHT CLIMATE CHANGE

Our Executive Director, Helen Slinger, on the role of finance and the treasury team in building a more sustainable and resilient economy