Blue Chip Companies Are Ditching ESG Terms From Their Loans
- Added value of ESG label ebbs as scrutiny on instruments grows
- Share of SLLs in EMEA has dropped after hitting record in 2022
Sustainability-linked loans are supposed to create incentives for corporate borrowers to reach ESG goals, such as cutting greenhouse gas emissions.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Some companies that once saw a benefit in adding ESG claims to their borrowing are now backing away.
Mercedes-Benz Group AG, Equinor ASA and ArcelorMittal SA have all dropped dropped ESG (environmental, social, governance) labels from revolving credit facilities this year, according to data compiled by Bloomberg that has been confirmed by the companies.