The Big Take
Wall Street’s ESG Loans Charge Corporate America Little for Missed Goals
Banks and borrowers are rushing to add sustainability targets to loans, yet for many deals the incentives are all but meaningless.
This article is for subscribers only.
When American Campus Communities Inc. announced the signing of a $1 billion sustainability-linked credit line in May, its executives decided to take a victory lap.
For the first time, they said, the company was tying its borrowing costs to targets ranging from improved energy efficiency to workforce and boardroom diversity. The largest owner of college apartments in the U.S. even put out a press release touting its commitment to environmental, social and governance goals.