Crystalbrook Collection has become the first known hotel brand in the country to secure a Sustainability-Linked Loan, supported by the Commonwealth Bank of Australia (CBA).
Designed to incentivise and support companies to achieve ambitious environmental or social targets, a Sustainability-Linked Loan ties the borrower’s cost of debt directly to their sustainability performance.
Crystalbrook’s targets are focused on minimising water usage and waste, reducing carbon emissions, and enhancing energy efficiency across the hotel chain’s properties.
“This loan is a testament to our unwavering commitment to sustainability leadership in the hospitality industry,” said Crystalbrook Collection CEO, Geoff York.
“It not only provides us with the financial flexibility to further our sustainability initiatives but also validates our efforts to date.
“Increasingly, companies require evidence of sustainability policies as a precursor to engagement and we hope CBA’s recognition of our sustainability commitment will help to support both sustainability and business outcomes.”
Crystalbrook Collection has already implemented numerous sustainability initiatives across its properties, including the use of recycled materials in construction, digital check-ins to reduce paper waste, and partnerships with local, sustainable food producers.
For the past three years, Crystalbrook has used independent measurement platform, Earth Check, to assess its environmental performance across the industry. Multiple Crystalbrook hotels have ranked in the 100th percentile across key performance metrics, specifically in emissions, energy, and water usage.
“We are delighted to support Crystalbrook’s sustainability initiatives with this Sustainability-Linked Loan,” said CBA Major Client Group Executive General Manager, Chris Williams.
“Crystalbrook is already setting industry standards and we are proud to continue our partnership as they set even more ambitious sustainability targets.”