Schroders, the FTSE-listed asset manager, has agreed an unusual deal with its banks: it will pay less in debt interest and fees on any future borrowing if it hits environmental and social targets.

Deals to link companies’ borrowing to environmental targets have caught on in recent years, particularly in the energy sector. MUFJ, the Japanese bank, co-ordinated a consortium of five banks lending to Polish energy group Energa under such a deal only last week.