UAE Business: Hempel links $1.62bn credit facilities to sustainability targets – Gulf Digital News

UAE Business: Hempel links $1.62bn credit facilities to sustainability targets – Gulf Digital News

World-leading coatings company, Hempel has successfully amended its EUR1.5 billion ($1.62 billion) credit facilities, linking borrowing costs to four sustainability targets.

Coinciding with Earth Day (April 22) and in line with its ‘Investing in our planet’ theme, Hempel has amended its EUR1 billion Revolving Credit Facility and its EUR500 million Term Loan linking borrowing costs to its sustainability targets.

To help drive efforts to meet Hempel’s ambitious sustainability targets, the facility’s interest margin will be adjusted up or down, based on Hempel’s ability to meet its four sustainability goals.

KPIs linked to loans

Hempel’s Key Performance Indicators (KPIs) linked to its loan agreements are reduce scope 1 and 2 CO2e emissions, reduce scope 3 CO2e emissions, reduce waste to landfill at production sites and reduce and phase out hazardous (red) raw materials (RRM).

Hempel will effect 90% reduction in absolute CO2e emissions for Scope 1 & 2 by 2025 in line with the Science Based Targets 1.5°-degree pathway. It will screen 70% of direct and indirect spend suppliers by 2025 through the Hempel Procurement Sustainability Screening.

Moreover the company will ensure that zero waste goes to landfill from production sites by end of 2025 and bring about 25% reduction of RRM (kg/1,000L paint produced) by end