Denmark. FLSmidth & Co. A/S
|Date of agreement:||13 Oct 2022|
|Customer:||FLSmidth & Co. A/S|
|Amount in EUR:||EUR 150 million|
This loan is linked to ambitious key performance indicators agreed with our customer.
NIB is providing a sustainability-linked loan to finance FLSmidth’s MissionZero sustainability programme for reducing carbon dioxide (CO2) emissions in the cement and mining industry to zero by 2030.
FLSmidth has set Science Based Targets (SBT) in alignment with limiting global warming to 1.5 °C. The loan NIB is providing is linked to the SBT and key performance indicators (KPIs) to be achieved. The SBT will be implemented by reducing the CO2 emissions of FLSmidth manufacturing, logistics and upstream suppliers, and their Scope 3 downstream emissions.
According to the Science Based Targets pledge, by 2030 FLSmidth will:
- Be carbon neutral in its own operations
- Direct 30% of its spend to suppliers with similar decarbonisation targets
- Reduce downstream scope 3 GHG emissions 56% per revenue from use of sold products.
All three indicators are material and relevant for the company’s operations.
FLSmidth provides productivity for the global mining and cement industries. It delivers market-leading engineering, equipment and service solutions that enable their customers to improve performance, drive down costs and reduce environmental impacts. Their operations span the globe, and the company has more than 12,000 employees, present in more than 60 countries. In 2021, FLSmidth generated revenue of DKK 17.6 billion. The company is listed on Nasdaq OMX Exchange Copenhagen.
Fulfilment of NIB's mandate
The loan is linked to sustainability KPIs, and the targets set by FLSmidth fit NIB’s environmental mandate. In addition, the measures to be achieved may indirectly have productivity implications.
The Science Based Targets are ambitious, covering the company’s emissions across the value chain – from its own operations, its supply chain and its customers. Promoting and offering more energy-efficient equipment to sectors that are difficult to abate like cement and mining is key to decreasing global CO2 emissions.
The target achievements are reported in FLSmidth’s annual sustainability report.