NEW YORK--(BUSINESS WIRE)--American Express Company (NYSE: AXP) today announced the settlement of the company’s first Environmental, Social, and Governance (ESG) Bond on Tuesday, May 3. The use of the net proceeds of the $1 billion bond may be allocated toward sustainable financing projects in the Green and Social categories as directed by the newly developed American Express Sustainable Financing Framework, which is aligned with the company’s global ESG strategy.
Projects in the Green category include those related to green buildings, energy efficiency improvements and renewable energy, and the circular economy, which includes responsible production projects like the company’s goal of having the vast majority of the cards it issues made of at least 70% recycled or reclaimed plastic by the end of 2024. Social projects are comprised of initiatives connected to socioeconomic advancement and empowerment, access to essential services, and affordable housing. All net proceeds from the sustainable financing are expected to be fully allocated to eligible projects within two years of the date of issuance.
The company’s Sustainable Financing Framework will guide its Green, Social, and Sustainability financing transactions. Developed in alignment with the International Capital Markets Association (ICMA) Green Bond Principles 2021, the ICMA Social Bond Principles 2021, and the ICMA Sustainability Bond Guidelines 2021, the framework outlines the use of proceeds, process for project evaluation and selection, management of proceeds, and reporting in connection with Green, Social, and Sustainability financing transactions. The framework has been independently evaluated by Moody’s ESG Solutions.
American Express’ ESG Strategy
American Express’ ESG strategy aims to mobilize its business to address pressing global challenges; help people and businesses thrive; and create equitable, resilient, and sustainable communities. The strategy comprises three pillars: Promote Diversity, Equity, and Inclusion (DE&I); Build Financial Confidence; and Advance Climate Solutions.
To guide the strategy, American Express set initial goals to include a $1 billion DE&I Action Plan, a commitment to net zero carbon emissions by 2035, and to maintain strong support for small businesses, including by reaching $100 billion in spending by consumers at small, independently-owned retailers or restaurants on Small Business Saturday and during other Shop Small campaigns from 2021 to 2025. More information on American Express’ ESG strategy and goals can be found in its most recent ESG Report.
Learn more about American Express’ approach to corporate sustainability and ESG here.
ABOUT AMERICAN EXPRESS
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.
Key links to products, services and corporate responsibility information: personal cards, business cards, travel services, gift cards, prepaid cards, merchant services, Accertify, Kabbage, Resy, corporate card, business travel, diversity and inclusion, corporate responsibility and Environmental, Social, and Governance reports.
Source: American Express Company
Cautionary Note Regarding Forward-Looking Statements
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The forward-looking statements contain words such as “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “commit,” “continue,” or other similar expressions. Actual results may differ from those set forth in the forward-looking statements due to a variety of factors, including those found in the company’s Annual Report on Form 10-K for the year ended December 31, 2021, the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and the company’s other filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements.