The promise and pitfalls of sustainability-linked loans

Tiny premiums and discounts still make them more virtue-signaling than climate-incentivizing, even as asset values surge.

(Mark Hulbert, an author and longtime investment columnist, is the founder of the Hulbert Financial Digest; his Hulbert Ratings audits investment newsletter returns.)

CHAPEL HILL, N.C. (Callaway Climate Insights) — Sustainability-linked loans have the potential to be a major force for climate change mitigation.

They are not even close to realizing that po…