Summary: This article introduces a corporate climate finance playbook designed to help corporate decision-makers accelerate their climate finance strategies. The playbook offers insights on various financial instruments, their strategic use, and best practices in corporate climate finance. It addresses three core questions: available financial instruments and their application to climate, when and how to use each instrument considering climate and business considerations, and examples of companies successfully applying these instruments. The playbook aims to be a practical guide for companies to unlock the full potential of their business in achieving their climate goals. It also provides five tips to start or grow a corporate climate finance playbook.
The corporate climate finance playbook, developed in collaboration with Salesforce, provides a comprehensive overview of the financial instruments available in the corporate capital stack and how they can be applied to climate goals. It includes a taxonomy of commonly available instruments such as green bonds, sustainability-linked loans, internal carbon pricing, and more.
To assist decision-makers in choosing the appropriate instrument, the playbook offers a decision-making flowchart, factoring in goals, resources, stakeholder buy-in, and organizational structure. Real-life examples from companies like Cisco Foundation, Microsoft, and Salesforce serve as inspiration for others in their climate finance journey.
To get started on developing a corporate climate finance playbook, the article suggests five tips: understand goals and tradeoffs, work with key stakeholders for buy-in, explore climate finance options and effort required, build a holistic climate finance strategy leveraging multiple forms of capital, and be prepared with a comprehensive plan for the right moment.
In conclusion, the corporate climate finance playbook provides valuable guidance and examples for companies looking to accelerate their climate finance strategies. By strategically employing financial instruments and aligning with their climate goals, businesses can make a positive impact on the environment while achieving their strategic objectives.
Sources:
– Salesforce
– CPI (Climate Policy Initiative)