Hundreds of Companies Have to Meet ESG Goals This Year or Pay Up

A growing number of companies are facing deadlines for sustainability commitments they made to lenders years ago, testing a key corner of the market for ESG debt.

More than 250 bonds globally will face deadlines this year to either meet their sustainability performance targets or face a coupon step-up, according to the Anthropocene Fixed Income Institute. That’s up from the roughly 24 securities facing such deadlines last year, setting the stage for a potential rash of step-ups.

Firms including Europcar Mobility Group SA, A2A SpA and Legrand SA recently disclosed they missed certain sustainability targets pegged to their bonds. ...