Anthropocene Fixed Income Institute’s Post

❓What happens to SLBs when their targets and KPIs are recalculated? Holcim, one of the world's largest cement producers, has adjusted the baselines underpinning its outstanding Sustainability-Linked Bonds — with important ramifications for investors.  In our latest analysis, we examine how revisions to Holcim's carbon intensity and water-use have led to the target levels being recalculated. While this doesn't necessarily change the probability of the targets being met, it does require scrutiny from investors. 💡 Our analysis finds that two of the bonds referencing the longer 2030 targets may still reference the original absolute targets, which are now harder to be met, and this could result in a higher option value for those securities. Read the full paper here 👉 https://lnkd.in/e6RBc8dG Written by Emiel Mohamed Loh, Prahalad Prasad, and Josephine Richardson #FixedIncome #SustainabilityLinkedBonds #Holcim #TransitionFinance 

  • No alternative text description for this image
Cedric Rimaud

Sustainable Finance / Green Bonds / Carbon Transition / Coal Managed Phaseout / Certified Chair™ Board Advisor / CFA charterholder / Risk Management

1w

Thanks for sharing - quick question: how often do you see companies changing their corporate perimeter recalculating their KPIs/SPTs?

To view or add a comment, sign in

Explore content categories