Can Green Credentials Get You Better Business Loans?
Jon Wragg on why lenders increasingly treat a sustainability rating such as EcoVadis as a risk indicator, and what that can mean for the cost of borrowing.
Transcript (edited for readability)
Jon Wragg
Obviously HSBC has been very vocal in this area and talked about certain accreditations and certain realms of sustainability will give you preferential treatment. It will give you better, um, it will give you better lending criteria, it will give you, make sure you pay less interest in certain areas, because they can actually give you preferential rates very simply because there's a risk indicator. Because you have something like EcoVadis in HSBC's case that shows them, it very simple, why you're not a risk, and therefore they don't have to give you a, as a greater, um, interest rate and therefore risk.
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