Case 7
Case 7
instruction under file “BFC5130 S1 2023 Case Seven Motivation-Does Sustainability Pay”
Essay must include an executive summary, introduction, body (questions for consideration), conclusion.
questions for considerations:
Your task is to critically analyse the underlying motives behind the design of this
Sustainability Improvement Loan (SIL), from the perspective of both Barry Callebaut
and the providers of the SIL (ING being the lead coordinator). Your task is to also
critically assess the design of this SIL and provide recommendations for
improvement. The questions below are provided as a guide to direct your research
and analysis:
1. Considering the design of the SIL Barry Callebaut has taken, how does this differ from
other key sustainable finance products it could have taken instead? In other words, how
does this SIL (and other sustainability-linked loans-SLLs) differ/innovate compared to
other key sustainable finance products available to companies such as Barry Callebaut
(green and/or social finance products for instance).
2. What are the key features of the SIL Barry Callebaut has taken? Critically assess why
Barry Callebaut elected to tie its ESG score to its RCF and the implications for its SIL if
Callebaut’s ESG score changes (which it did between June 2017 and July 2018).
3. Is the SIL aligned with the Callebaut’s sustainability strategy?
4. Can you suggest improvements in the design of this SIL? You may wish to compare and
contrast this SIL to similar products (SLLs) issued at the time the Barry Callebaut’s SIL
was taken.
5. Some critics are arguing that there is potential for greenwashing with sustainability
improvement loans? Does you research support this or does if find that SILs/SLLs can
alleviate greenwashing potential compared to other green/sustainable finance
products?
Format of essay will be:
1. executive summary,
2. introduction,
3. body (questions for consideration- total 5 questions)
4. conclusion.
