Abstract
The global climate crisis is triggering a shift in the way some banks lend money to chemical firms. Bankers are starting to give preferential borrowing rates to companies with good environmental performance. This is not happening because banks are moved by images of starving polar bears or news about deforestation and extreme weather. Instead, their calculations show that borrowers’ improving environmental performance equals less financial risk. Financiers have picked out the specialty chemical firm Kemira as one of the early qualifiers. In a deal brokered earlier this year, the Finnish company stands to save millions of euros on €400 million (about $450 million) in revolving credit. Kemira is not alone. Over the past year, Stora Enso, Indorama Ventures, DSM, and Solvay became some of the first industrial companies to take sustainability-linked loans in what experts say is an approach that is set to become the norm. Such a shift in
Published Version
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