OCBC launches net zero loan for corporates
Companies get a reduced interest rate on their loans when they meet targets.
OCBC has launched the OCBC 1.5°C loan, a loan that incentivises corporates to set and work towards clear carbon emission reduction targets that are aligned with internationally recognised, science-based net zero decarbonisation goals.
When the targets are met or exceeded, corporates will get a reduced interest rate on their loans.
The reference pathways, developed by autonomous global organisations, are geared towards achieving a net zero level of greenhouse gas emissions by 2050 to limit global warming to 1.5⁰C above pre-industrial levels.
Mike Ng, head of sustainability office, global wholesale banking, OCBC, noted the need for businesses to set ambitious, rigorous targets– and follow these through with strong initiatives to reduce emissions and measure progress— in order for the world to successfully transition to net zero.
“This mammoth task can only be achieved with the collaboration of all stakeholders. Our new financing solution aligned to a 1.5°C pathway is a concrete step to partner with our customers on their net-zero journey together. The only path to delivering our NZBA commitments is through our customers reaching net-zero, and we will do our utmost to support them through this journey,” Ng said.