Sustainability Now The Cost of Missing Sustainability Targets
Jul 19, 2024
Guilherme de Melo Silva from MSCI ESG Research discusses companies facing financial penalties for missing sustainability targets with sustainability-linked bonds. The podcast explores how companies like Public Power Corporation and NL are adapting and improving their sustainability commitments despite setbacks.
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SLBs vs. Green Bonds
- Unlike green bonds with their fixed use of proceeds, SLBs offer flexibility.
- This flexibility allows broader corporate participation in sustainable finance.
Missed Targets, Renewed Commitments
- Two utility companies, NL and PPC, missed sustainability targets tied to their issued bonds.
- Despite this, both companies doubled down on their commitments, issuing new sustainability-linked bonds.
Impact of Ukraine War
- Both NL and PPC attributed missed emissions targets to the changing energy market post-Russia's invasion of Ukraine.
- Increased reliance on coal-fired power generation led to higher emissions than anticipated.