Belgium: Positive Incentive Agreement Solvay Links 2.3 Billion Dollar Credit to Greenhouse Gas Reduction
Solvay has agreed to link the terms of an existing $ 2.3 billion revolving credit facility to a reduction in greenhouse gases. The company concluded this positive incentive agreement with its syndicate of nine banks.
Brussels/Belgium — The company announced in September 2018 a commitment to cut greenhouse gases from its own operations by 1 million tonnes by 2025 relative to 2017 levels, thereby decoupling for the first time its new targets from its earnings growth. The group intends to achieve this reduction by further improving energy efficiency, energy mix and by investing in clean technologies.
CEO Jean-Pierre Clamadieu said that his company would seek to integrate sustainability into all key aspects of their business, including financing. Associating their greenhouse gas emissions target to the cost of credit was a logical step. The partners participating in the revolving credit facility are BNP Paribas Fortis, Citibank, Commerzbank, Crédit Agricole, HSBC, ING, JP Morgan Chase Bank, KBC Bank and The Bank of Tokyo-Mitsubishi UFJ. The revolving credit facility is intended for general business purposes and matures in 2023, with possibility to extend it to 2024.