Sustainability Linked Loan

In a New Zealand first for the professional services sector, Deloitte New Zealand has incorporated sustainability targets into our credit facility with BNZ, converting it to a Sustainability Linked Loan (SLL). Sustainable finance is a relatively new development in capital markets but is an important mechanism for driving change as we transition to a more sustainable world.

Adding another step in the firm’s maturity, this loan represents our long-standing commitment to equity and inclusion, as well as our social and environmental goals. It sets out sustainability targets, that are linked to our AllIn and WorldClimate ambitions, which are among the material issues for our business but are also measurable and ambitions.

The targets are:

• Increase the percentage of females in the Partner group by at least 22% compared to 2021
• Deloitte sets and publishes a target focused on diversity attributes beyond gender during the life of the loan
• Increase the percentage of females across all leadership positions by at least 27%, again compared to 2021 and,
• Reduce absolute Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 70%, and to reduce Scope 3 GHG emissions by 50% per FTE

All of the targets have been through a second party opinion, undergoing a robust process to ensure the credibility of the loan structure and that the targets align with the Sustainability Linked Loan principles.

We will receive financial incentives (or disincentives) for our progress against the targets, thereby ensuing an extra level of attention by all our leaders which will help drive discussion across the business and also with our clients on these issues.

The term of the loan is three years, to June 2025.