ESG-Linked Loans Are Set to Blast Off in Canada, CIBC Says

Sustainability-linked loans, a type of financing subject to a borrower’s compliance with environmental or socially responsible standards, is set for a boost in Canada as the government and companies move aggressively to reduce greenhouse gas emissions.

“You’ll see support for this product in virtually every sector going forward,” said Eric Metivier, a managing director and head of corporate banking for Canada at CIBC. “This is the beginning of the story for sustainability-linked lending in Canada.”

Sustainability-linked loans are a type of financing that tie borrowing costs to how well a borrower adheres to a set of environmental or social-good ...