Supported by a relationship spanning decades, ANZ and Adelaide Airport worked together to develop Australia’s first sustainability linked loan (SLL). The loan was grounded on a sustainability rating by independent company Sustainalytics with targets then agreed to by the bank and AAL.
If AAL demonstrates an improvement on these targets and the rating, the cost of the debt is reduced.
“It was certainly a robust discussion around AAL’s sustainability performance on the targets over time which brought the two of us closer,” says ANZ Head of Sustainable Finance, Katharine Tapley. “We viewed that [deal] as a partnership between ANZ and AAL around stewarding more sustainable development.”
Tapley says consumers are becoming more interested and picky about where their goods and services come from, particularly millennials.
“They are a generation significantly more ethically minded than any generation that we've seen before,” she says.
AAL has installed a significant rooftop solar panel system and invested in a storm water runoff trial with SA Water to improve airside greenery - leading to lower temperatures and reduced fuel burn.
“We're certainly looking for the next challenge,” says Cox. “There are little exciting things we can show to demonstrate leadership that helps in our backyard and ends up having a flow on effect.”
Cox says the beauty of the SLL was that it came from a long-term understanding between the bank and the airport: “In many ways that's what sustainability is all about - it's not transactional. It's about a partnership that transcends individuals and transcends a profit moment.”