ESG-linked Loan
E.SUN promotes sustainability lending, which accounts for not only enterprises’ financial performance but also their ESG development. ESG-linked loans provided by E.SUN is an embodiment of linking lending criteria to sustainability index or an enterprise’s overall performance in terms of the environment, society, and corporate governance, so as to encourage enterprises to make investment in this regard to achieve the "sustainability performance indicators" they have committed to. Whether they achieve such indicators during the loan period will determine the preferential financial service applicable to them.
Eligibility
Enterprises voluntarily making ESG commitments and carrying out concrete and verifiable sustainability conduct.
Loan description
- Sustainability performance indicators: May be set based on industry characteristics, ESG development items valued by enterprises, and operations-related indicators, e.g., annual reduction of carbon emissions by X% and year-on-year increase in wastewater recycling rate by X%.
- Sustainability performance indicators must comply with the SMART principles
- Specific: Conceptual, vaguely-defined, or unverifiable indicators are not recommended.
- Measurable: Quantifiable items should be preferentially selected as indicators.
- Attainable: Indicators must be sustainable and can deliver phased achievements.
- Relevant: Fulfillment of corporate social responsibility and positive impact of an enterprise by the conservation, recycling, or any resources reuse, whether it directly or indirectly related to its operation, or by taking active actions to regulate suppliers throughout the industry supply chain.
- Time bound: One-off actions are not recommended: Each indicator should be able to be verified at each phase.
