The landmark transaction, which was part of a successful refinancing of $450 million in bank facilities, makes Macquarie one of Australia's first universities to establish an SLL. It is also the country's second organisation to include biodiversity among its SLL goals.

The move builds on Macquarie University's existing sustainability credentials*, which have received international recognition.

In the 2023 Times Higher Education (THE) Impact Rankings, the University was ranked first in the world for Life Below Water and fourth for Clean Water and Sanitation. The rankings, which compare university performance to the United Nations' Sustainable Development Goals (SDGs), also placed the University 39th in the world overall.

Sustainability-Linked Loans incentivize sustainability performance by tying financing costs to achievement of pre-determined social and environmental Key Performance Indicators (KPIs).

The SLL at Macquarie University includes six KPIs that address scope 1 and scope 2 emissions, scope 3 emissions, biodiversity, staff and student education on indigenous cultural safety and the United Nations' SDGs, gender equality, and increasing underrepresented group participation in STEM (science, technology, engineering, and mathematics).

The loan also includes a one-of-a-kind University commitment to reinvest all margin adjustments in scholarships for disadvantaged students.

Vice-Chancellor, Professor S Bruce Dowton, says the SLL is an important addition to Macquarie University’s efforts to make meaningful inroads on the issue of sustainability.

“Commonwealth Bank is proud to support Macquarie University not only with its first Sustainability-Linked Loan, but also with the commitment to reinvest any savings in scholarships for disadvantaged students.

This innovative application of sustainable finance to better serve the communities in which we operate resonates with CBA’s purpose, to build a brighter future for all,” she said.

“Macquarie University is leading the way. The broadness of the scope of the KPIs, which include emissions, social and biodiversity targets, and the materiality of these goals to the University’s operations show how SLLs can support issuers to achieve their ambitions. Importantly, Macquarie continues to aim higher – demonstrating to the market that a mature sustainability program supports successful execution on strategy,” Leerhsen added.