Sustainability-linked loans incentivise sustainability performance through tying financing costs to performance against pre-agreed social and environmental key performance indicators (KPIs). Macquarie’s KPIs include: reducing Scope 1, 2 and 3 emissions, improving biodiversity, Indigenous cultural safety and awareness of UN Sustainability Development Goals, gender equality, and widening participation in Science, Technology, Engineering and Mathematics (STEM) for blind and visually impaired and deaf and hard of hearing children, as well as women and girls.
Deborah Leerhsen, Executive General Manager Global Client Solutions at Commonwealth Bank, commended the University’s continued commitment to driving better social and environmental outcomes.
“Commonwealth Bank is proud to support Macquarie University not only with its first sustainability-linked loan, but also with the commitment to reinvest any savings in scholarships for disadvantaged students. This innovative application of sustainable finance to better serve the communities in which we operate resonates with CBA’s purpose, to build a brighter future for all,” she said.
“Macquarie University is leading the way. The broadness of the scope of the KPIs, which include emissions, social and biodiversity targets, and the materiality of these goals to the University’s operations, show how SLLs can support issuers to achieve their ambitions. Importantly, Macquarie continues to aim higher – demonstrating to the market that a mature sustainability program supports successful execution on strategy,” Leerhsen added.
Vice-Chancellor, Professor S Bruce Dowton, said the SLL is an important addition to Macquarie University’s efforts to make meaningful inroads on the issue of sustainability.
“To have six KPIs in one transaction is a significant achievement and reflects the diversity and sophistication of the University’s commitment to the United Nation’s Sustainable Development Goals,” he said. “The ambitious targets reinforce our work to advance sustainability across our operations, research, curriculum and environment.”
Macquarie’s biodiversity KPI is focused on the continued conservation of the critically endangered Turpentine-Ironbark Forest, 3.5 hectares of which is located on campus. The restoration work aims to provide habitat to native bird species including the powerful owl and the superb fairy wren.