Green and sustainable finance

In our view, the strongest businesses are those which have people and the planet at their heart and over the past decade it has become ever more apparent that taking care of your environment as well as the people who work for your business and the community your business serves doesn't detract from the bottom line.

Specialist financing products designed to support and incentivise borrowers and issuers on their sustainability journey have suddenly become mainstream. Recent changes in legislation as well as pressure from European investors means that we are now seeing lenders and investors carrying out due diligence which covers environmental, social and governance (ESG) issues as well as financial, tax and operating issues and in our view this isn't going to change any time soon.  If anything, the importance of making sure ESG is at the heart of every decision you take is only going to increase as the world looks to recover from the Covid-19 crisis.

We know that defining what "sustainability" is, is the first challenge for everyone. Sustainability means different things to different people and the same is true when talking about sustainable business. What all sustainable businesses have in common though is a desire to make a positive impact on the environment, society or both.

Many sustainable businesses adopt a three pronged strategy placing equal emphasis on the planet, people and profit. Aims include preserve the environment and conserve natural resources, build social equity, support employee well-being, promote fair trade, maximise long-term profitability and promote growth. Our role is to ensure that your funding arrangements recognise and support your business in achieving these aims.

Our team of banking and debt capital markets specialists have extensive experience of advising on both green and sustainable finance products.  We work with clients and their sustainability advisors to ensure that their funding arrangements contain meaningful targets that will enable them to use the monies borrowed or raised to support the growth and development of their businesses whilst also demonstrating their on-going commitment to achieving real change in all that they do. Examples of this could include improving energy efficiency or waste water management in buildings, enhancing the net biodiversity of developments or supporting employees and the people in the communities they are looking to build.

We have been at the forefront of the move towards sustainable finance. In 2006 we acted for The Housing Finance Corporation (THFC) on their £400 million green loan from EIB and on-lending to housing associations with the proceeds to be used for retro-fitting existing stock and building energy efficient housing. Since then we have advised a number of borrowers, lenders and issuers on the terms of green loans, sustainability linked loans, green bonds and sustainable bonds.

In brief

• Team of banking and debt capital markets specialists
• At the forefront of sustainable finance, advising on our first green bond in 2006
• Advise a number of borrowers, lenders and issuers on green and sustainable loans and bonds
• Work with clients to ensure funding arrangements contain meaningful targets