Green Finance and Sustainable Debt

Companies that can demonstrate their ESG commitment are benefiting from access to new funding avenues such as green bonds, green loans, and green leases. Broadly known as the sustainable debt market, the volume of loan issuances in this segment of the financial services sector is expected to grow rapidly over the coming years. The European Union, for example, announced earlier this year that it would issue EUR225 billion worth of green bonds to fund its COVID-19 recovery journey. According to Swedish bank SEB, $500 billion of green debt is expected to be issued in 2021. The key condition on green debt and bond issuers is that it must be used to fund specific projects. An alternative to this is sustainability-linked bonds (SLBs).

The Future of Sustainability-Linked Bonds (SLBs)

SLBs are expected to reach $1 trillion in issuance in 2021. These products feature more flexibility than green bonds as the funds can be used for a wider range of projects, though they must still contribute to addressing sustainability issues. Similar products are emerging locally, such as Quadrent's Green Lease — a partnership between the Bank of New Zealand and Quadrent that offers favourable rates and a range of other features such as robust ESG reporting systems and processes. For many organisations, these green finance products are a compelling offer, not only due to the potential to save money through discounted rates, but for the wider role, it can play in helping a company establish effective ESG systems.

How Can Quadrent's Green Lease Help My Organisation?

Quadrent's Green Lease is designed to allow your organisation to proactively take action to ensure your technology is reused after it comes to the end of its useful life within a corporate environment, by providing you with best practices around the reuse and recycling of devices. Not only does this allow your company to maintain sustainable and environmentally conscious practices around your device lifecycles, but it becomes another way for your organisation to meet today's growing ESG expectations.

If your company is looking to demonstrate its commitment to ESG and access a range of new finance options in the process, click here for more information.