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Gold mining giant Newmont has closed the mining industry’s first ever sustainability-linked bond. The bond raised net proceeds of $992m in a registered $1bn public offering of senior notes issued at 2.6%.

The bond is linked to the performance of the company in the area of ESG (environmental, social and governance), and  is specifically focused on limiting the company’s carbon emission levels and delivering on its commitment to promote more women into senior roles. If Newmont fails to achieve these commitments it will pay more interest to bondholders.

Newmont has become the first large mining company to issue a bond linked to sustainability. It represents a significant step in aligning its financials with ESG commitments that have become a critical strategy issue within the industry.

“The successful execution of our sustainability-linked note demonstrates bondholder confidence in our ability to maintain financial strength and deliver long-term value to all of our stakeholders,” said Newmont president and CEO Tom Palmer.

So far Newmont has committed to a 32% reduction in its Scope 1 and 2 carbon emissions by 2030, compared to a 2018 baseline; and a 30% reduction in Scope 3 emissions by 2030, compared to a 2019 baseline. It has also set a target for women to represent 50% of its senior leadership by 2030.

The bond issue, which was first announced on Dec. 6, follows a $3bn sustainability-linked revolving credit facility Newmont clinched in March. The facility includes a pricing feature linked to third-party sustainability performance metrics, and improved Newmont’s costs over its previous facility.

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“This offering further aligns our financial and ESG performance, linking our commitments to climate change and gender parity. Our long history of taking a leading approach to ESG practices has positioned Newmont as the gold sector’s recognized sustainability leader and we continue to challenge ourselves and the industry through our commitment to sustainable and responsible mining.” Said Tom Palmer.