Perspectives

ESG financing for corporates

Interest in Environmental, Social and Governance (ESG) financing, including green bonds and sustainability, linked facilities, is growing significantly.

It is estimated that the green bond market will grow to $1trn in 2021 with growth fuelled not just by business need, but also by political demands for a “green recovery”. But there’s still much confusion amongst stakeholders; what are the different types of ESG financing? How can corporates raise ESG financing? Are there specific requirements related to ESG financing?

ESG financing can affect a wide range of business activities and it is important for corporates to give careful consideration to the far-reaching implications, both pre- and post-issuance, to ensure success.

Our latest thinking can help you answer questions like:

  • What are green bonds?
  • What is sustainability-linked financing?
  • What are the key considerations for corporates and ESG financing?
  • How does an issuer define their approach to ESG financing?
  • Are there specific accounting considerations, including hedge accounting?
  • What is the lifecycle of a green bond?

In this article we also explore the implications of ESG transactions for corporates, and how they can influence a wide range of different business areas including: financing strategy, risk management, accounting, hedge accounting, systems, processes and controls and reporting.

Get in touch with our ESG specialists to find out more.

Click here to view our ESG and Financial Services Advisory article published in the 2022 edition of the South African Treasurers Journal entitled “Next generation treasury”. This article was originally published by the Association of Corporate Treasurers of Southern Africa (ACTSA) in in partnership with Treasury Management International (TMI).

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