The terms of the loan are linked to mutually agreed sustainability targets that relate to quarrying equipment company Metso Outotec reducing its own operations’ and supply chain’s CO2 emissions by 2025.
Metso Outotec says sustainability is a strategic priority and the company has set Science Based Targets (SBT) in alignment with limiting global warming to 1.5 degrees. The sustainability-linked loan agreement is continuation of Metso Outotec’s previous agreement in September 2021 with the core banking group to include sustainability targets into the €600m syndicated revolving credit.
Metso Outotec and the NIB have agreed to include three sustainability related targets to the loan. These are: reducing CO2 emissions from the group’s own operations; reducing CO2 emissions from the Group’s logistics; the group’s suppliers having a Science Based CO2 emissions reduction target
The development of these targets will be measured annually and, depending on achieving them, the pricing of the loan will either decrease or increase.
“NIB’s sustainability-linked loan will finance Metso Outotec’s sustainability ambitions, contributing to the company’s efforts to reducing CO2 emissions from their operations,” says André Küüsvek, president and CEO of the Nordic Investment Bank. "Linking financing to sustainability objectives effectively supports companies in integrating sustainability into their strategy and achieving ambitious goals."
Eeva Sipilä, CFO of Metso Outotec, commented: “In addition to managing our handprint CO2 emissions, emissions from customer operations, decreasing the environmental footprint of our own operations and in our logistics and supply chain is a high priority for Metso Outotec. We are further underlining this commitment with sustainable funding."
She added: "Reducing CO2 emissions is fundamental for us all to limit global warming to 1.5 degrees. Together with NIB we have truly built an industry-leading example of sustainable financing."