Corporate environmental performance considerations within bank lending decisions

The article provides an overview of bank commitment to the environment and considers the potential implications of corporate environmental performance considerations within bank lending decisions. The United Nations Environment Programme (UNEP) has an important rote in outlining the views of the international bank community on the environment and sustainable development. Companies seeking finance from banks can expect to be questioned on their environmental policy and management practices as part of the lending evaluation. A company whose management is aware of their environmental responsibilities and acts accordingly has nothing to fear from environmental credit risk assessment. Companies engaged in environmental management activities can more readily benefit from bank consideration of environmental performance within lending decisions.