Using two measures of firm carbon-risk exposure to capture convergent materiality, we examine whether the syndicated loan market considers borrowers’ carbon-risk exposure in loan pricing. We find that carbon intensity does not constitute material information for banks, whereas environmental scores have a statistically significant but incidental economic effect on loan spreads. We also find inconclusive evidence that the market differentiates between firms in high and low environmentally sensitive industries. Finally, we show that green banks charge higher loan spreads to more environmentally responsible firms. Overall, we provide strong evidence that environmental scores matter in loan pricing decisions.