Johnson Controls has issued its first sustainability-linked bond in an offering of $500m in ten-year senior notes.

The offering is in conformity with the company’s recently published integrated green, social and sustainability-linked finance framework and with the issuance of a sustainability-linked bond marks the first S&P500 industrial company to complete both accomplishments.

“Experts say that an additional $1-2tr/year must be invested in sustainability and cutting greenhouse gases if we are going to have any chance of meeting the steep carbon reductions science tells us is urgently required,” said George Oliver, chairman and CEO, Johnson Controls. “Governments alone will not be able to mobilise this sum of money, so private sector capital needs to get sustainable, and fast. Building the market for sustainable finance is therefore an imperative; and ensuring that the highest standards are met so that dollars flow to projects that truly accelerate decarbonisation, is also critical. With our continued commitment to sustainable finance and aggressive sustainability targets, we are showing our leadership in the field.”

The company has stated that the adoption of an expanded, integrated sustainable finance framework will give it greater flexibility to utilise a wider range of sustainable finance instruments than its prior green finance framework going forward.

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