Pernod Ricard has signed its first sustainability-linked loan, totalling €2.1 billion, which will be used to refinance an existing facility that is due to expire in June 2024.
The decision to refinance the facility is connected to two environmental commitments, both of which are part of Pernod’s ‘Sustainability-Linked Financing Framework’. The first commitment is to reduce absolute greenhouse gas emissions (Scopes 1 and 2) on operated sites, while the second aims to reduce water consumption per unit produced at its distilleries.
The loan is also indicative of Pernod’s commitment to becoming more sustainable in its daily operations and financing strategy, and meets the Group’s Sustainability & Responsibility (S&R) Roadmap goals.
Vanessa Wright, chief sustainability officer, said: “As part of our sustainability and responsibility roadmap ‘Good Times from a Good Place,’ we are committed to preserving the world’s natural resources by reducing carbon emissions, water consumption and waste throughout our value chain”.
She added: “The group’s recent sustainability-linked facility is another demonstration of our drive to reduce our environmental footprint and protect the natural ecosystems, where we source all the ingredients that make our iconic brands”.
The line of credit has been signed for by 22 banks, with an initial maturity in April 2028 and a two-year extension option.
Pernod launched two sustainability-linked bonds in 2022, linked to the same key performance indicators; however, this announcement marks its first sustainability-linked loan.
By Gwen Jones
Source: foodbev.com
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