Johnson Controls Issues First $500 Million Sustainability-Linked Bond
Sustainability-linked bond will target greenhouse gas emissions reduction goals
CORK, Ireland — Johnson Controls has furthered its leadership in sustainable finance following the completion of its first sustainability-linked bond offering of $500 million in ten-year senior notes. The offering of the sustainability-linked bond is in conformity with the company’s recently published integrated green, social, and sustainability-linked finance framework.
Earlier, in January 2021, Johnson Controls adopted a new set of ambitious environmental goals, which were approved by the Science Based Targets Initiative. The company committed to cut operational emissions by 55% and reduce customers’ emissions by 16% before 2030. Based on these commitments, the company issued a sustainability-linked bond that ties the interest rate on the bond to the achievement of these environmental goals.
“Experts say that an additional $1-2 trillion/year must be invested in sustainability and cutting greenhouse gases if we are going to have any chance of meeting the steep carbon reductions science tells us is urgently required,” said George Oliver, chairman and CEO, Johnson Controls. “Governments alone will not be able to mobilize this sum of money, so private sector capital needs to get sustainable, and fast. Building the market for sustainable finance is therefore an imperative, and ensuring that the highest standards are met so that dollars flow to projects that truly accelerate decarbonization is also critical. With our continued commitment to sustainable finance and aggressive sustainability targets, we are showing our leadership in the field.”
“This is further demonstration that Johnson Controls is taking a lead in the zero emissions buildings space,” said Katie McGinty, vice president & chief sustainability, government, and regulatory affairs officer at Johnson Controls. “Slashing carbon emissions from buildings is critical in tackling climate change, since they represent 40% of all greenhouse gas emissions and analyses show that 30% and more of green finance proceeds go to sustainable buildings projects. Johnson Controls OpenBlue digital platform and services for optimizing buildings can drive improvements of 50% and more in energy efficiency to deliver corresponding reductions carbon emissions.”
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