On the other hand, impact financing is backed by a commitment from the company. Companies integrating extra-financial criteria into their investment strategies, including those related to Corporate Social Responsibility (CSR), guarantee a bonus whose assessment is carried by an independent third party and whose banking counterparty has no power to influence this assessment. Tangible elements must be provided to demonstrate the achievement of the objectives appended to the credit agreement (parity objectives, energy consumption reduction, etc.).
All types of financing can therefore be backed by these performance objectives, bonds issues, the NEU CP-NEU MTN market, bank loans, RCFs or even leases and leasing, and the new analysis grid, which consists of considering ESG criteria, is therefore emerging among all borrowers.
There are many reasons for companies to engage in this type of approach, and CSR is becoming a strategic investment criterion for communicating environmental strategy or facilitating dialogue between financial and environmental departments within organizations.
The treasurer’s profession will thus be profoundly modified, as he or she must now align financing and sustainable development, optimize financing costs & extra-financial objectives, and the CSR approach with the company’s financial strategy.