Every CFO Should Know This: ’The Future Of Banking’ Ties Verified ESG Performance To Cheaper Capital.
"Danone′s third-party-verified ESG performance will be ’directly impacting, upwards or downwards, the margin payable to the banks over the entire duration of the facility.’”
[COMMENTARY]This is great news and provides even more encouragement for companies to engage in ESG activities. Independent studies had verified that companies with high ESG ratings generally have a lower cost of capital. However, this is possibly the first time that it’s been directly linked to credit facilities!
Every CFO Should Know This: ’The Future Of Banking’ Ties Verified ESG Performance To Cheaper Capital, by Jay Coen Gilbert, February 20, 2018, Forbes, USA.