Raben’s debut sustainability-linked loan sets five comprehensive KPIs across environmental, social and governance issues to reach ambitious 2025 goals.
On 16 July, European logistics company Raben Group successfully closed a €225 million five-year inaugural sustainability-linked loan (SLL), for which BNP Paribas acted as Sustainability Coordinator.
The margin on the SLL is tied to the company achieving a comprehensive set of five key performance indicators (KPIs) covering Environmental, Social and Governance (ESG) issues for the road transportation and logistics sector. The KPIs are an innovative mix of both internal KPIs and an external party ESG assessment.
The combination of Raben’s five KPIs address in a comprehensive way the material ESG issues for Raben’s activities, including greenhouse gas (GHG) emissions, gender diversity and governance practices. This SLL thus marks a significant milestone for the European road transportation and logistics sector and for the Polish financial market.
The SLL’s KPIs form part of Raben Group’s ECO2WAY goals it defined for 2025, as laid out in its 2020 Sustainability Report of:
- 30% reduction of emissions’ intensity in Raben’s facilities (scope 1 and 2)
- 10% reduction of emissions’ intensity in transport activities (all scopes)
- 96% of fleet with Euro V and VI
- Relative reductions in road freight as a result of increasing transport efficiency
- Greenhouse gas calculations – updating and enhancing the CO2 calculator in transport
“Sustainability has been in our DNA already for years and this transaction is the true confirmation of our ambitions and engagement in this area. It is also a huge commitment for our business to continue improving in the future. However, we are happy to take up this challenge because we believe that Raben Group has the strong drive to sustainability,” said Ewald Raben, Raben Group CEO.
He added: “Today’s agreement demonstrates that other sectors such as banks perceive responsible business conduct as crucial for future economy and business. We are delighted to join forces and work together on delivering sustainable solutions for future generations. I am convinced that both the market and the awareness will evolve over the next 3 to 5 years and customers will turn to companies that put sustainability at the heart of their operations.”
André Boulanger, Vice President of the Management Board, responsible for Corporate and Institutional Banking, SME and Corporate Banking, BNP Paribas Bank Polska, said: “By advising Raben on its inaugural ESG-linked financing, BNP Paribas was able to demonstrate the value sustainable finance can bring to corporates in the transition to a low carbon and more sustainable economy. As decarbonisation becomes a strategic imperative, corporates will increasingly need sustainable finance as a lever to achieve their net-zero ambitions. Poland will have to catch up if it wants to be part of the net-zero European Union by 2050.”
Cécile Moitry, Co-Head of Sustainable Finance Markets, BNP Paribas, said: “BNP Paribas is committed to support corporate clients in their transition to sustainable business models. Raben’s Sustainability-Linked Loan combines an innovative set of internal and external KPIs addressing material ESG issues for the road transportation and logistics sector in line with the group’s 2025 ambitions.
BNP Paribas Bank Polska and the Bank’s Sustainable Finance Markets teams collaborated to deliver this significant milestone for the Polish financial markets.”
Stefaan Decraene, Head of International Retail Banking, BNP Paribas, said: “The sustainability transition is at the core of our strategy, and this achievement illustrates our commitment to corporate clients by supporting their efforts to place the transition to a low carbon economy at the centre of their transformation. It also highlights the strength of the bank’s integrated model and expertise across the BNP Paribas Group.”
Cover picture: raben-group.com