I previously discussed how the construction industry will have to implement massive change in order to help the UK meet its target of net zero emissions by 2050 - Searching for a concrete solution to a big problem
The article below highlights an interesting development. Willmott Dixon have secured a sustainability-linked credit facility. As the article indicates, the contractor will benefit from lower interest rates if it achieves certain green targets. Financial incentives like these may act as the catalyst for change in the industry down the construction chain.
Willmott Dixon has secured a sustainability-linked credit facility of £50m in a deal led by HSBC. Interest rates on the loan go up or down depending on the contractor’s green performance based on the Loan Market Association’s ‘Sustainability-Linked Loan Principles’. HSBC said: “The facility will have a margin linked to Willmott Dixon’s sustainability targets and provide liquidity for general corporate purposes.