Mastercard Issues $600 Million Sustainability Bond
Mastercard today announced that it has successfully priced a $600 million Sustainability Bond at a fixed rate of 1.90%. This milestone further supports the company’s work to build an inclusive and sustainable digital economy through commercially sustainable social impact. Mastercard’s global commitments include reaching net zero emissions by 2050 and bringing 1 billion people and 50 million small businesses into the digital economy by 2025.
The proceeds from the Sustainability Bond will support significant 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 eleven areas, as outlined in the Mastercard Sustainability Financing Framework and will contribute to the advancement of the UN Sustainable Development Goals.
“No matter where you work or live, we are all in the sustainability business; the future of people, our planet and the economy are inextricably linked,” said Michael Miebach, chief executive officer. “To deliver positive social and environmental impact at scale companies need to invest in the technology, insights, and partnerships to make programs commercially sustainable for the long term. Our Sustainability Bond will support both social and green initiatives to drive inclusive and sustainable growth for our company and the communities we serve around the world.”
Building an Inclusive and Sustainable Digital Economy
Mastercard leverages its products, services, capital resources and people to address issues of social and economic inequality. As a leader in financial inclusion for more than a decade, last year the company reached a global milestone of achieving financial inclusion for 500 million previously unbanked people. In 2020 Mastercard also committed $250 million to supporting the recovery of small businesses globally and $500 million to closing the racial wealth and opportunity gap in the U.S. starting in seven cities.
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.