13 Oct 2022
NIB signs sustainability-linked loan with Danish FLSmidth
NIB and Danish FLSmidth & CO A/S have signed a seven-year EUR 150 million sustainability-linked loan. The loan is linked to FLSmidth’s sustainability performance and climate targets.
The sustainability-linked loan provides financing for FLSmidth’s ambition to become more sustainable across its own operations and supporting the cement and mining industry on their climate journey. The company has set ambitious Scope 1, 2 and 3 Science Based Targets (SBT) in alignment with limiting global warming to 1.5 °C.
“Linking financing to sustainability performance emphasises FLSmidth’s commitment to their climate targets. With this loan, NIB can support in transforming the essential business sectors, such as cement and mining, that must also become greener,” says André Küüsvek, NIB President and CEO.
NIB and FLSmidth have agreed to include three key performance indicators (KPIs) to the investment loan. The KPIs address CO2 emissions of FLSmidth’s own operations and supply chain.
- Be carbon neutral in its own operations by 2030
- 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.
“With our MissionZero pledge, we are fully committed to developing technologies and solutions that will enable the mining and cement industries to move towards zero emissions by 2030. As sustainability is an integral part of everything we do, it is only natural for us to also link our financing to our sustainability ambitions. This is a first step in this direction, and we are very pleased with the long-term commitment provided by NIB”, says Roland M. Andersen, Group CFO at FLSmidth.
The development of the targets will be measured annually. Depending on the achievement of these targets the pricing of the loan will either decrease or increase.
FLSmidth provides sustainable productivity to the global mining and cement industries. The company delivers 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 12,000+ employees, present in more than 60 countries. In 2021, FLSmidth generated revenue of DKK 17.6 billion. MissionZero is FLSmidth’s sustainability ambition for zero emissions in mining and cement by 2030.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s. Visit us at www.nib.int.
For further information, please contact
Søren Hovgaard, Country Lead Denmark, Senior Advisor, at +45 4081 3575, Soren.Hovgaard@nib.int
Lotta Forssell, Senior Communications Officer, at +358 10 618 0498, firstname.lastname@example.org