This $48B Real Estate Giant Wants To Punish Itself If It Misses Green Targets

Canadian pension fund investor Ivanhoé Cambridge has linked $6.8B (£5B) of its corporate debt to ESG performance, meaning its financing costs will go up if it misses sustainability targets.

The company, which owns 1,100 buildings across the world valued at about $48B (£35B), said it had reached a deal with 11 banks that provide its corporate term loans — debt not linked to individual buildings, but to the company as a whole. That means if sustainability performance goes up, it will pay less interest, but if it goes down, it will pay more.