Energy Efficiency, Finance, Sourcing Renewables - May 5, 2022
American Express Issues $1 Billion ESG Bond
American Express Company announced the settlement of the company’s first Environmental, Social and Governance (ESG) Bond on May 3.
The use of the net proceeds of the $1 billion bond may be allocated toward sustainable financing projects in the green and social categories as directed by the newly developed American Express Sustainable Financing Framework, which is aligned with the company’s global ESG strategy.
Projects in the green category include those related to green buildings, energy efficiency improvements and renewable energy and the circular economy, which includes responsible production projects such as the company’s goal of having the vast majority of the cards it issues made of at least 70% recycled or reclaimed plastic by the end of 2024. Social projects are comprised of initiatives connected to socioeconomic advancement and empowerment, access to essential services and affordable housing. All net proceeds from the sustainable financing are expected to be fully allocated to eligible projects within two years of the date of issuance, according to a statement.
The company’s sustainable financing framework will guide its green, social, and sustainability financing transactions. Developed in alignment with the International Capital Markets Association (ICMA) Green Bond Principles 2021, the ICMA Social Bond Principles 2021, and the ICMA Sustainability Bond Guidelines 2021, the framework outlines the use of proceeds, process for project evaluation and selection, management of proceeds and reporting in connection with green, social, and sustainability financing transactions. The framework has been independently evaluated by Moody’s ESG Solutions.