Sustainable Finance
We have made a name for ourselves as a pioneer in ‘green’ financing.
Since 2019 we have been linking all long-term elements of our corporate financing to a sustainability component. This means that, depending on how we score in the ESG categories of Environmental, Social and Governance, our financing costs will either decrease or increase.
Sustainable Finance Framework published
Our → Sustainable Finance Framework provides the framework for future corporate financing guided by sustainability principles. It specifies how sustainable financing instruments, such as green bonds and “Schuldschein” loans, are to be used. We thus create an important prerequisite for being able to raise funds on the financial market for environmental and climate protection projects or the development of sustainable products. The projects include, for example, the construction of energy-efficient buildings and the installation of photovoltaic systems and charging stations for electric cars at the locations.
With our Sustainable Finance Framework, we offer investors the opportunity to support sustainable projects – with a high degree of transparency and credibility.
In addition, we have determined three sustainability indicators. If these are met, interest payments will decrease; if they are not met, however, the payments will increase. A target value known as the Sustainability Performance Target (SPT) was defined for each indicator. One example of this are the reduction targets for greenhouse gas emissions embedded in our → climate strategy. In addition, we are committed to improving a → sustainability rating prepared by the ISS ESG agency.
EcoVadis rating as a benchmark for sustainability
We have linked several financing instruments to the development of our sustainability rating. This is how ecologically and socially responsible business operations also have a financial pay-off for us, for example through reduced interest rates or avoided compensation payments.
The sustainability rating prepared by the EcoVadis rating agency is applicable. In its assessment, EcoVadis considers the categories of environment, labor and human rights as well as integrity and procurement. The respective scores are weighted differently in the final result, taking into account the sector to which a company belongs. The 21 assessment criteria make up a maximum score of 100 points. Some of the aspects taken into account are energy and water consumption, CO2 emissions as well as anti-corruption protection and social practices of suppliers.
