Cromwell Property Group has restructured a $1.2 billion lending facility into a sustainability-linked loan.
This restructured loan sets specific environmental and social targets, focusing on reducing emissions and the gender pay gap.
The new loan framework sets ambitious environmental benchmarks for Cromwell, aiming for net zero scope 3 emissions by 2045 and scope 1 and 2 emissions by 2035.
A crucial social target includes reducing the gender pay gap to no more than 12% by 2028.
Lara Young (pictured above), Cromwell’s group head of ESG, highlighted the comprehensive nature of this initiative.
“Building on our previous announcements, we are extending our net zero approach across all business activities to include our entire global network and supply chain,” Young said.
Cromwell aims to decrease its scope 3 emissions intensity to 30.16 kgCO2e/m² by 2028, a move that would cut over 4.4 million kilograms of carbon dioxide equivalent. This target aligns with strategies to encourage tenants to switch to renewable energy and improve waste management practices.
Alongside environmental targets, Cromwell is equally focused on advancing social goals, particularly in reducing gender disparities within the company. The group aims to maintain pay parity across roles and uphold a balanced gender representation in leadership, following the 40:40:20 model.
The Commonwealth Bank (CBA) and Societe Generale played pivotal roles as sustainability coordinators.
Jon Coombes, CBA’s GM major client group, expressed pride in supporting Cromwell’s sustainability journey.
“Cromwell’s commitment to high-quality, energy-efficient buildings sets a standard for the industry,” Coombes said. “This green sustainability-linked loan is a prime example of ambitious commitments driving substantial sustainable outcomes.”
The loan adheres to the Asia Pacific Loan Market Association (APLMA) Green Loan Principles and the APLMA Sustainability Linked Loan Principles, positioning Cromwell at the forefront of sustainable finance.
Tessa Dann, head of sustainable finance for Australia and New Zealand at Societe Generale, praised the initiative.
“This transaction is a rare but natural fit in the sustainable finance market, showcasing Cromwell’s ESG ambitions and acting as a model for others in the commercial real estate sector,” Dann said.
Access the Cromwell Property Group media release here.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
