Metso Outotec brings sustainability and finance together
By Steve Ducker08 June 2022
Finnish company Metso Outotec has published a Sustainability-Linked Finance (SLF) Framework that continues to integrate its sustainability strategy into its financing arrangements.
The company, which owns brands including McCloskey International, said sustainability is a strategic priority and embedding sustainability across all areas of the business, including linking sustainability performance with the terms of financing, is part of implementing the company’s overall strategy.
It adds that this framework represents a significant step towards that goal.
“The framework highlights that emissions reductions in our own operations and supporting our customers in reducing their emissions are extremely important to us,” said Marius Verwoerd, Metso Outotec’s vice president sustainability.
“Our commitment to net-zero CO2 by 2030 as well as growing our Planet Positive sales can now be tied to our financing arrangements. This is a strong signal to everyone, including our customers, suppliers and capital markets, that we are truly ‘walking the walk’ with sustainability.”
Chief finance officer Eeva Sipilä added: “We provide solutions that support our customer industries’ decarbonisation. Having sustainability targets linked to financing is yet another demonstration of our strong commitment to 1.5 degree journey and the fight against climate change.”
The SLF Framework has been developed in line with the International Capital Markets Association’s Sustainability-Linked Bond Principles 2020 and the Loan Market Association’s Sustainability-Linked Loan Principles 2022.
The SLF Framework is designed to support the future issuance of sustainability-linked securities by Metso Outotec and includes three key performance indicators that are at the core of Metso Outotec’s sustainability strategy.
For each security issued under the Framework, the interest rate or other provision affecting the cost of financing will change if Metso Outotec is not able to meet any of the predefined sustainability performance targets by an agreed review date.
The selected performance indicators in the Framework cover the CO2 emissions reductions of Metso Outotec’s own operations, its suppliers and its customers. These performance indicators are scope 1 and 2 CO2 emissions (tCO2); suppliers signed up for the Science-Based Targets initiative; and annual increase in revenue from Planet Positive portfolio.