Housing association L&Q has successfully issued a £300m sustainability-linked bond, pledging to investors it will achieve a string of environmental improvements across its residential housing stock over the coming years.
Announcing the fund raise this week, the not-for-profit housing provider said the bond had been structured against three key performance indicators (KPIs) targeting operational carbon emissions, the energy efficiency of residential homes, and the delivery of more affordable homes.
Under the new targets, the firm has pledged to work to reduce its Scope 1 and Scope 2 direct emissions by 20 per cent against a 2019/20 baseline by the end of March 2024.
It is also seeking to achieve an average System Applications and Products in Data Processing (SAP) score of 72 or above for energy efficiency across its portfolio – equivalent to a Energy Performance Certificate (EPC) rating of C or above.
Unlike green or sustainable bonds, funds raised