Sustainability-Linked Guarantees
As with other guarantees, a sustainability-linked guarantee is designed to ensure the fulfilment of an agreement between a buyer and seller. What makes a sustainability-linked guarantee unique is that it links the terms of guarantee pricing with meeting ambitious sustainability performance targets.Want to know more?
If you’d like to know more about sustainability-linked guarantees, please contact us.Why choose a Sustainability-Linked Guarantee?
Sustainability-linked guarantees are designed to provide further financial incentives to achieve your sustainability targets.
A sustainability-linked guarantee can be issued for a range of sustainability-related targets.
How do Sustainability-Linked Guarantees work?
If your company is interested in sustainability-linked guarantees, there are a few key steps to be aware of.
Origination and setting targets
Issuing a sustainability-linked guarantee facility agreement requires clear sustainability KPIs and targets to achieve. These can centre around various topics, such as: climate change, circularity, waste & material reduction, and gender diversity. Our advisors in Sustainable Products support you through the process to ensure that sustainability KPIs and targets comply with market standards, and as such, whether the guarantee agreement can be linked.
Life-cycle follow up
The guarantee agreement details the terms of the agreement, including the target as well as the timeline for price adjustments and sustainability evaluation. Once the agreed period is up, your company must provide a sustainability compliance certificate or other documentation for Danske Bank to assess your ability to meet your sustainability targets and KPIs. It is a requirement that KPIs are subject to independent assurance.
