{"id":1727494,"date":"2022-11-07T05:04:17","date_gmt":"2022-11-07T10:04:17","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1727494"},"modified":"2022-11-07T05:04:41","modified_gmt":"2022-11-07T10:04:41","slug":"how-business-giants-get-lower-interest-rates-for-meeting-diversity-quotas","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-business-giants-get-lower-interest-rates-for-meeting-diversity-quotas\/","title":{"rendered":"How Business Giants Get Lower Interest Rates for Meeting Diversity Quotas"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhow-business-giants-get-lower-interest-rates-for-meeting-diversity-quotas%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1727494&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Amid an uptick in race-conscious hiring programs throughout corporate America, many prominent businesses are now writing racial and gender quotas into their credit agreements with banks, tying the cost of borrowing to the companies\u2019 workforce diversity, a <em>Washington Free Beacon<\/em> analysis found.<\/p>\n<p>The businesses that have struck such agreements include the pharmaceutical giant <a href=\"https:\/\/freebeacon.com\/latest-news\/shareholders-demand-pfizer-scrap-race-conscious-policies-in-the-wake-of-civil-rights-lawsuit\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/freebeacon.com\/latest-news\/shareholders-demand-pfizer-scrap-race-conscious-policies-in-the-wake-of-civil-rights-lawsuit\/&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw1AE-L4-jjY_sBp0O0yuRcR\">Pfizer<\/a>, the consulting groups <a href=\"https:\/\/www.ey.com\/en_uk\/news\/2021\/12\/ey-esg-linked-revolving-credit-facility-reinforces-sustainabilit-commitments\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.ey.com\/en_uk\/news\/2021\/12\/ey-esg-linked-revolving-credit-facility-reinforces-sustainabilit-commitments&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw2ijceapUOrpS8-mdL0jaY-\">Ernst &#038; Young<\/a> and <a href=\"https:\/\/www.businesswire.com\/news\/home\/20210208005684\/en\/AECOM-amends-and-extends-its-credit-facility-and-links-borrowing-cost-to-sustainability-and-diversity-goals\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.businesswire.com\/news\/home\/20210208005684\/en\/AECOM-amends-and-extends-its-credit-facility-and-links-borrowing-cost-to-sustainability-and-diversity-goals&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw2yvt7fhm9Yal0Yat54hnWZ\">AECOM<\/a>, insurers <a href=\"https:\/\/www.esgtoday.com\/prudential-links-4-billion-credit-facility-to-climate-and-diversity-goals\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.esgtoday.com\/prudential-links-4-billion-credit-facility-to-climate-and-diversity-goals\/&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw0kFx_PqY1CRu7tfGky3c4W\">Prudential<\/a> and <a href=\"https:\/\/www.definityfinancial.com\/English\/newsroom\/news-releases\/news-details\/2022\/Definity-Sustainability-Linked-Loan-structure\/default.aspx\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.definityfinancial.com\/English\/newsroom\/news-releases\/news-details\/2022\/Definity-Sustainability-Linked-Loan-structure\/default.aspx&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw0K0V3lVgvi48Zb7LFOHzB9\">Definity Financial<\/a>, private equity firms <a href=\"https:\/\/www.esgtoday.com\/blackrock-links-borrowing-costs-to-diversity-and-sustainable-investing-targets\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.esgtoday.com\/blackrock-links-borrowing-costs-to-diversity-and-sustainable-investing-targets\/&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw1PMBxvXHf6uxvs39lpm6hc\">BlackRock<\/a> and the <a href=\"https:\/\/www.carlyle.com\/media-room\/news-release-archive\/carlyle-largest-esg-linked-credit-facility-us-4-billion-board-diversity\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.carlyle.com\/media-room\/news-release-archive\/carlyle-largest-esg-linked-credit-facility-us-4-billion-board-diversity&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw1cAzEI0d2GJOsGCb_A_U4U\">Carlyle Group<\/a>, the technology company <a href=\"https:\/\/www.prnewswire.com\/news-releases\/trimble-underscores-commitment-to-sustainability-with-new-five-year-1-25-billion-revolving-credit-facility-301514475.html\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.prnewswire.com\/news-releases\/trimble-underscores-commitment-to-sustainability-with-new-five-year-1-25-billion-revolving-credit-facility-301514475.html&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw3aww6CY3BXTw1ToN9_z6Kg\">Trimble<\/a>, and the telecommunications giant <a href=\"https:\/\/www.telefonica.com\/en\/communication-room\/telefonica-refinances-its-main-5-5-billion-euro-syndicated-facility-under-sustainable-criteria\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.telefonica.com\/en\/communication-room\/telefonica-refinances-its-main-5-5-billion-euro-syndicated-facility-under-sustainable-criteria\/&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw3wnVrKPprAS0LqiUhjpjFq\">Telef\u00f3nica<\/a>.<\/p>\n<p>Over the past two years, each of those companies has secured a lending agreement, known as a credit facility, that links the interest rate charged by banks to the company\u2019s internal diversity targets, creating a financial incentive to meet them. If the business achieves its targets, it won\u2019t have to pay as much interest on the loans it takes out; if it falls short, it is required to pay more.<\/p>\n<p>Under the terms of BlackRock\u2019s <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1364742\/000119312521107747\/d113222dex101.htm\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.sec.gov\/Archives\/edgar\/data\/1364742\/000119312521107747\/d113222dex101.htm&#038;source=gmail&#038;ust=1667681155866000&#038;usg=AOvVaw1UpQLtyrjIJ7WI0lMUk4NM\">$4.4 billion credit facility<\/a>, for example, Wells Fargo will lower the firm\u2019s interest rate by 0.05 percent if it hits two benchmarks\u2014a 30 percent increase in the share of black and Hispanic employees by 2024, and a 3 percent increase in the share of female executives each year\u2014or hike the rate by the same amount if it misses both.<\/p>\n<p>The agreements, which typically involve multiple banks, are effectively credit cards for businesses: Rather than make a onetime loan, lenders extend a continuous line of credit that companies can dip into at will, either to cover operating costs or as a rainy day fund for emergencies. That means changes in a facility\u2019s interest rate\u2014even modest ones like BlackRock\u2019s 0.05 percent diversity adjustment\u2014can have an appreciable effect on a business\u2019s bottom line.<\/p>\n<p>Companies have advertised these agreements as proof of their progressive bona fides. Trimble CEO Rob Painter, for example, said the company\u2019s credit facility\u2014which conditions interest rates on the percentage of female employees\u2014illustrates Trimble\u2019s &#8220;commitment&#8221; to &#8220;gender diversity in the workplace.&#8221; In press releases announcing their own credit facilities, executives at BlackRock, Prudential, and Definity say the agreements demonstrate their commitment to &#8220;accountability.&#8221;<\/p>\n<p>But critics see something far more sinister: a form of blatant discrimination that will harm consumers, credit markets, and the rule of law.<\/p>\n<p>&#8220;If a bank penalized a company&#8217;s credit rating because it had too many women or was too racially diverse, we would be appalled,&#8221; said one senior<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid an uptick in race-conscious hiring programs throughout corporate America, many prominent businesses are now writing racial and gender quotas into their credit agreements with banks, tying the cost of borrowing to the companies\u2019 workforce diversity, a Washington Free Beacon analysis found.<br \/>\nThe post How Business Giants Get Lower Interest Rates for Meeting Diversity Quotas appeared first on Washington Free Beacon.<\/p>\n","protected":false},"author":184,"featured_media":1727498,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-1727494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1727494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/184"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1727494"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1727494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1727498"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1727494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1727494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1727494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}