“Until now, the main objective has been to use the most financially advantageous offers. However, the affair linked to FIFA loans taken out by numerous public authorities revealed the limits of this objective. The financial operations carried out by the City will now take into account extra-financial, environmental, social and governance (ESG) criteriaso that they constitute a lever for building a low-carbon, sustainable and social economy,” indicates Alfonso Gomez, Mayor of Geneva.
Exclusion areas for borrowing
Of the areas of exclusion were set on the basis of those applied in a number of responsible investment charters. Financial intermediaries will have to refuse any offer from entities active in tobacco or alcohol, gambling, fossil fuels, nuclear power, GMOs, arms or pornography.
Lenders having integrated the ten principles of the United Nations Global Compact will be privileged (The Ten Principles | UN Global Compact). Finally, the DFEL will be careful not to select lenders that may enjoy a controversial reputation, particularly in terms of human rights and environmental impacts. A report will be established in one year.
Concerning long-term loans, the charter now includes the reinforced ambitions of the City in terms of green loans (funds raised to be allocated to projects that have a favorable impact on the environment) or bonds linked to sustainable development (debt securities whose financial conditions may vary depending on the achievement of predefined sustainability objectives).
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