Owners of Commonwealth Bank of Australia (ASX: CBA) shares likely know about the bank's push into 'green' and environmental, social, and governance (ESG) loans and finance solutions.
But the broader public might not. That is, until today. This morning, the bank embarked on another push to bring its 'green' products to the forefront of the public's minds.
As of Tuesday's close, the CBA share price is $96.04. That's 2.09% lower than it was at the end of Monday's session.
Today was a rough day for the broader market as well. The S&P/ASX 200 Index (ASX: XJO) tumbled 1% while the All Ordinaries Index (ASX: XAO) slipped 1.13%.
Let's take a look at today's news from the biggest bank on the ASX.
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CBA looks back on the birth of its 'green' solutions
The CBA share price suffered today amid a broader market slump.
In more positive news, the bank has sponsored an article on its 'green' and ESG finance solutions. It was published by the Australian Financial Review this morning.
The article discussed CBA's ESG Term Deposits, its Green Repurchase Agreements, and its Green Development Loans.
The former was announced late last year when IFM Investors invested $200 million into the term deposit. Capital from the term deposit will be used to fund ESG-friendly loans.
Around the same time, CBA and Northern Trust announced the completion of a $50 million Green Repurchase Agreement.
Finally, earlier in 2021, CBA signed Australia's first Green Development bond with Charter Hall Group (ASX: CHC). The integrated property group used the facility to finance the build of a carbon-neutral office building in Victoria.
"Sustainable finance products are the pipes that connect global pools of capital to the companies transitioning their business to more sustainable outcomes," CBA executive of institutional banking and markets, Andrew Hinchliff, was quoted by the AFR as saying today.
And 'green' and ESG-focused finance is a journey the bank is ready to continue in 2022.
It reportedly thinks the sustainable finance market will be boosted by clients' demand for ESG funding this year.
"All clients are looking at how to transition, and how to demonstrate those commitments to their stakeholders," CBA managing director of sustainable finance and ESG, Charles Davis, was quoted as saying.
"Companies turn to sustainable finance products to codify that commitment by directly linking their funding costs to the delivery of a critical strategy."
CBA share price snapshot
This year has been rough on the CBA share price.
Today's fall included, it's now 6% lower than it was at the start of the year. Though, it's still 15% higher than it was this time last year.
