KPIs/Targets – Building A Sustainability-Linked Financing Approach

As the sustainable finance market continues to evolve, sustainability-linked loans or revolving credit facilities have become the preferred format for many corporates to showcase their sustainability efforts through their financing decisions. These instruments differ from use-of-proceeds structures in their intent, in their construction and in their communication. In this session, NeuGroup and partner Societe Generale will facilitate a member discussion on how to address these standards (that are not yet fully defined) and compare notes on how members can structure SLL identifying key principals and lessons learned.

NeuGroup formed the ESG Working Group in 2020 as a result of requests from members and the multiple ESG discussions appearing in individual peer group meetings. These more informal working sessions provide an opportunity for interested members to share experiences on common topics, document best practices and welcome outside experts to speak on current trends – including companies that are not yet NeuGroup members. The ESG group will also coordinate with virtual interactive sessions on similar topics, and is expected to include discussions on Green Bonds, ESG Risk ratings, sustainability KPIs, compliance, and ESG returns among others.

Working Group sessions are meant for interested participants from across the NeuGroup network, and approved non-NeuGroup members. They are ad hoc cohorts that NeuGroup organizes when a critical “hot topic” has captured a wide range of members’ attention. Working Groups can meet just once, a handful of times, or become ongoing venues to discuss these cross-peer group issues. Recent examples include LIBOR transition, ESG, D&I, Treasury Management Systems and others. These groups often include both subject matter experts, as well as members just wishing to learn, with the possibility of splitting the groups for more detailed discussions.