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Does Sustainability Pay? Barry Callebaut's Sustainability Improvement Loan

Published 13 Oct 2020
Reference 6539
Region Europe
Length 24 page(s)
Language English
Prizes & Awards

Winner of the Case Centre Awards and Competitions 2024 in the Category 'Economics, Politics and Business Environment'

2023 The Case Centre Best-selling Case in the Category 'Economics, Politics and Business Environment'


In June 2017, Barry Callebaut, the largest B2B cocoa and chocolate company in the world renewed its revolving credit facility (RCF) introducing a novel feature suggested by the Dutch bank ING: the margin on the RCF would be tied to the company’s ESG score from Sustainalytics, a leading sustainability agency, as a way to “make sustainability truly pay”. A year later, Barry Callebaut has made progress towards the ambitious environmental and social goals of its Forever Chocolate programme, yet its ESG score has fallen almost to the level where the margin on the RCF will increase.

Teaching objectives

To study successful innovation in sustainable financing and to explore ESG (environmental, social, governance) ratings

  • Sustainability
  • Sustainable Finance
  • Sustainability Improvement Loan
  • Sustainability Linked Loan
  • Green Bonds
  • ESG
  • ESG Ratings
  • Materiality
  • Greenwashing
  • Q42020