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Oil and gas industry moves to tap ESG-linked loans with pledges to cut emissions

Some investors have expressed concerns that issuers get to determine their own performance on climate targets attached to the bonds, say analysts

The oil and gas industry is increasingly looking to tap the rapidly growing pool of ESG-linked financing. Not everyone is convinced by the companies’ pledges to cut emissions, which underpin the loans.

Since 2021, a handful of North American fossil-fuel companies have issued sustainability-linked bonds and other instruments that are typically tied to certain environmental, social and governance metrics.

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