Corporate Bonds Sold for Sustainable Projects: A New Trend in Finance

Is Starbucks’ issuance of a $500 million corporate bond to support programs for coffee farmers the start of a new investment trend? Given the enthusiastic response, the answer is probably “yes.” Starbucks has indicated the issue was “significantly oversubscribed,” and that it “attracted interest from a diverse group of socially conscious investors outside of its normal investor base,” reports Fortune. The notes are rated A- by Standard & Poor’s, in line with the company’s corporate credit rating, so financially they are sound. Conceptually, aiming the mission-defined funds at the company’s producers is smart business and even smarter branding to the millennial market that makes up much of Starbucks customers: young adults aged 18 – 24 are 40% of the company’s sales. Other millennial-favored brands (Apple, Nike, Google, et. al.) are surely taking notes.

John Howell, Editorial Director

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News & Blogs

19 hours 7 min ago

(3BL Media/Justmeans) – Many companies continue to be skeptical about the business viability of creating more sustainable products. Those who are less enthusiastic about the idea of achieving competitive advantage through sustainability can draw some inspiration from those who are reaping the benefits of building brands with a positive social and environmental impact.

2 days 6 hours ago

(3BL Media/Just Means) - Animal welfare is an increasingly important CSR issue and it’s just moved even more to the center of the corporate conversation on the topic. 18 institutional investors, who represent £1.5 trillion in assets under management, have become the founding signatories to the first investor statement on farm animal welfare.

3 days 10 hours ago

(3BL Media/Justmeans) – Leading companies increasingly recognize the importance of embedding sustainability into their business models. However, professionals seeking sustainability outcomes face certain barriers. Return-on-investment rules are a long-standing challenge, and overcoming them requires positive engagement with finance teams. Presenting a strong business case is another key challenge, requiring creative work across the organization and often with external stakeholders.

4 days 16 hours ago

(3BL Media/Justmeans) – Millennials — the 20 and early 30-somethings that everyone is talking about; who are closely linked to technology’s rapid ascent; and who are expected to make up 50 percent of the workforce by 2020 — have become more than a demographic age group.

5 days 7 hours ago

(3BL Media/Just Means) -​ ​Nestlé has unveiled the finalists for the Created Shared Value (CSV) Prize 2016. These are​ ​Natural Extracts Industries (NEI) from Tanzania and Agro-Hub from Cameroon. Competition was stiff: the two finalists underwent four screening phases and beat out a​ ​list of 450​ ​contenders.

6 days 5 hours ago

(3BL Media/Justmeans) - This week, a couple of important shareholder resolutions will be brought forward in the annual meetings of energy giants Exxon-Mobil and Chevron.

6 days 16 hours ago

(3BL Media/Justmeans) – It’s now a moral and economic crisis when many young Americans graduate from high school without being on a pathway to a well-paying job. In Greater New Orleans, nearly one in five young people are neither working or in school. The region is home to the third largest population of disconnected youth in the U.S., where nearly 40 percent of of the children live in poverty and few students have exposure to good-paying, high-demand careers.