The conventional view of debt as having a negligible impact on the environment has undergone a sea change. Today, we recognize it as a potent tool in our arsenal against climate change.

As we confront the urgent global challenge of reducing emissions, debt financing is emerging as a crucial arena for promoting sustainable practices and mitigating harmful effects. Companies are increasingly recognizing that sustainability-linked green bonds can be used to refinance debt at lower rates than traditional options, leading to a reduced carbon footprint and improved financial performance.

By using debt financing as a means of advancing decarbonization, the institution was able to align its financial interests with its environmental goals, creating a mutually beneficial outcome that supports both the planet and its bottom line. And it demonstrates how innovative financing strategies and a steadfast commitment to environmental responsibility can work in unison to drive tangible progress.

#sustainability #climatechange #netzero #environment
#100daysoflearning Day 025

Four steps financial institutions can take on the path to net zero | EY - Global

Originally published on My LinkedIn on March 8, 2023.