The proceeds from the sustainability bond will support progress already made towards maximizing carbon reduction, supporting environmental choices for customers, and fostering inclusive growth. Investors will now have the opportunity to contribute to the advancement of these efforts. Specific green and social projects will align across 11 areas, as outlined in the Mastercard Sustainability Financing Framework and will contribute to the advancement of the UN Sustainable Development Goals.
Those 11 areas include:
- Green buildings
- Energy efficiency
- Renewable energy
- Eco-efficient and/or circular economy adapted products, production technologies and processes
- Pollution prevention and control
- Environmentally sustainable management of living natural resources and land use
- Climate change adaptation
- Mastercard impact fund
- COVID-19 response
- Equal rights
- Commercially sustainable social impact
In addition to pledging to net zero emissions, Mastercard’s environmental progress includes being the first in the payments industry to gain Science Based Targets initiative (SBTi) approval for its GHG goals, aligning with the Business Ambition for 1.5°C pledge. The company has also achieved its goal of 100% renewable electricity. By collaborating with banks, merchants, and other industry partners, Mastercard is supporting consumers with their environmental consumption choices and is committed to regrow 100 million trees over 5 years through the Priceless Planet Coalition.
The 10-year bond will pay interest semi-annually at a fixed rate of 1.90%. Mastercard expects to allocate the net proceeds from the Sustainability Bond to eligible initiatives within 3 years of the transaction. Accompanying this 10-year sustainability bond was a traditional $700M 30-year bond that will pay interest semi-annually at a fixed rate of 2.95%.
The Mastercard Sustainability Financing Framework has been reviewed by Sustainalytics, a Second Party Opinion Provider and is aligned with the Green Bond Principles (2018), Social Bond Principles (2020), Sustainability Bond Guidelines (2018), and Green Loan Principles (2018).