Press review
Reuters’ Refinitiv International Financing Review
""There is a convenient industry creating KPIs that is allowing a lot of greenwashing," said Gianfranco Gianfrate, professor of finance and sustainable finance lead expert at EDHEC risk institute in Paris. The Loan Market Association has already published sustainability-linked loan principles, but highly-rated companies "self-arrange" their own loans in the private loan market, and some have been able to set unchallenging targets with relationship banks. One company even described its own KPIs as "laughable" as they included targets around renewable energy use, recycling and promoting online products that were already part of its business and strategy. Weak KPIs help firms to avoid change by simply pledging to meet existing targets. Education technology company Pearson had one KPI linked to its commitment to extend its vocational educational reach internationally on a US$1.19bn SLL last March. “Companies will always pick KPIs that show they're a world leader, even if they're polluting a lot," Gianfrate said.”
Copyright Reuters’ Refinitiv International Financing Review
https://www.ifre.com/issue/7827/ifr-2315-11-jan-2020-17-jan-2020
2020
