Citi Perspectives Spring 2020

Citi Perspectives  | 41 Given the footprint of large multinationals and the complexity of their supply chain, it is not surprising that sustainability considerations are permeating every part of the business, from procurement’s supplier selection, to sales and marketing brand-awareness promotion, and increasingly also production standards and treasury and finance KPIs. And the same forces apply to banks; management, investors, and regulators expect every part of the bank to account for their contribution to the overall sustainability goals. • Process for project evaluations and selection must be documented • Management of proceeds must be transparent and traceable • Reporting to be kept up to date and readily available Last year, the Loan Market Association, together with Asia Pacific Loan Market Association, launched the following Green Loan Principles with the support of the International Capital Market Association: • Use of proceeds must be for green purposes Green Loan Principles Last year, Citi’s export agency finance team arranged the largest version export credit agency deal of its kind for Hornsea Project One, one of the world’s largest offshore wind farms located in the North Sea off the coast of England. • Each of the 174 wind turbines is twice the height of the Statue of Liberty. • Planned total generating capacity of 1.2 gigawatts • Expected to power one million homes with green energy • Sole arranger for an £800M facility supported by EKF, the Danish export credit agency Green Financing: A Sustainable Case In Point