Sustainable Finance

Sustainable finance is about including environmental, social and governance (ESG) considerations in investment and finance decisions. In recent years, we have seen that more and more investors and lenders, including banks, are considering ESG factors when making investment decisions. With the aim to support economic growth while reducing pressures on the environment and taking social and governance aspects into account.

Sustainable Finance tools

The past years various sustainable financing products have been developed. For loans, two particular main products have became popular. First, the financing of ‘green’ projects such as for the development of renewable energy sources, called Green Loans. And secondly, providing Sustainability Linked Loans for companies in order to improve its sustainability profile measured by predetermined targets. Once these targets have been met, the company will receive a discount on its loan.

Multidisciplinary and market leading practice

CMS is a Thought Leader and has a market leading Sustainable Finance practice. Our knowledge and experience is based on the work we have been doing for years for almost all market leading players in this area. Within the practice area group ESG we specialise in helping clients implement sustainable business practices. Therefore, at CMS we have developed a multidisciplinary sustainable finance approach, where specialists in the fields of regulation, financing, corporate law and energy work together.