Sweden. Electrolux Professional AB
|Date of agreement:||20 Oct 2021|
|Customer:||Electrolux Professional AB|
|Amount in EUR:||EUR 60 million|
|NACE sector / loan type:||Manufacture of electrical machinery and apparatus|
This loan contributes to climate change mitigation: 100%
NIB provides the sustainability-linked loan to finance the transition of Electrolux Professional’s (EPRO’s) operations in becoming more sustainable. EPRO aims for its own operations to become climate neutral by 2030. The company plans to achieve its target by improving energy efficiency and increasing the use of renewable energy sources in manufacturing. EPRO also has the ambition to reduce hydrofluorocarbons (HFCs) in its products. HFCs are cooling gases, classified as refrigerants with high global warming potential.
The NIB and Electrolux Professional have agreed on three key performance indicators (KPIs) to be achieved by the end of 2025 (2019 as base year). The KPIs are core to Electrolux Professional’s sustainability strategy and address 1) climate targets related to reducing CO2 emissions and 2) business-specific target linked to water consumption efficiency in products sold, as well as 3) the decrease of HFC gases in products.
Electrolux Professional’s main environmental impact occurs during the product-use phase (energy, water, detergents), which is why developing new energy-efficient products with low water consumption is an absolute priority for EP.
Electrolux Professional was separated from the Electrolux Group and listed on the Nasdaq Stockholm Stock Exchange in March 2020. Electrolux Professional offers food, beverage, and laundry products and solutions to restaurants, cafés, hotels, laundries, etc. The company has 11 manufacturing facilities in the USA, Sweden, Italy, Switzerland, France, China, and Thailand, and has a total of some 3,500 employees.
Fulfilment of NIB's mandate
The targets set by Electrolux Professional fit NIB’s mandate, as they contribute to the environmental objectives of climate change mitigation and resource efficiency. The set targets address material sustainability issues for Electrolux Professional.
NIB will follow up on the three selected KPIs with the client annually and require verification prior to margin adjustment.