Ethical egg farm is DBS Bank's first ESG-linked loan

Signal of change / Ethical egg farm is DBS Bank's first ESG-linked loan

By Jennifer Revell / 31 May 2019

DBS Bank has loaned a Singaporean egg producer, Chew’s Agriculture, SGD 27 million (roughly USD 20 million) for cage-free facilities that will allow its chickens to live a life that is cruelty-free. The farm will optimise production using an automated collection of eggs and keep chickens in optimum conditions.

The innovation here is not the egg farm but the loan: the first of its kind. When the borrower exceeds environmental, social and governance targets, the interest rate is reduced.

 

So what?

It is widely known that the move towards more ethical livestock rearing is critical to achieving sustainable development goals. Bank loans can play a part by ensuring that businesses can invest to meet global sustainability targets.

Could sustainability-linked financing accelerate sustainable business? 

 

Sources

https://www.todayonline.com/singapore/egg-supplier-gets-s27-million-dbs-loan-build-farm-conditions-apply

What might the implications of this be? What related signals of change have you seen?

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