Photo: Agnes Gourc Agnes Gourc, head, sustainable capital markets, BNP Paribas.

Companies that get loans with an “ESG” (environmental, social, and corporate governance) label but that have no immediate sustainability targets are a worrying new trend, according to BNP Paribas S.A.

Agnes Gourc, the head of sustainable capital markets at the French bank, told Bloomberg News that some borrowers want the benefits of tying loans to ESG goals without disclosing specific targets or performance metrics until a later date. Such “sleeping” sustainability-linked loans (SLLs), by companies including Grosvenor Group Holdings Ltd. and Raven Housing Trust Ltd., have already raised concerns over exactly how they are related to social and environmental benefits, adding more fuel to a global debate about corporate greenwashing.

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