Since 2019, the company has been linking all long-term financing to a sustainability component. Since then, financings with a total volume of around €1.4 billion have been concluded. “Interest in green financing instruments is growing; therefore, the Sustainable Finance Framework is the right step at the right time,” says Dietmar Heinrich, CFO of Dürr AG. “More and more investors are looking for investment opportunities with positive environmental or social returns in order to help shape the sustainable transformation of business and society. Political and legal requirements such as the Taxonomy Regulation of the EU also favor green forms of investment. With our Sustainable Finance Framework, we offer investors the opportunity to support sustainable projects – with a high degree of transparency and credibility.”
In accordance with the Sustainable Finance Framework, Dürr AG may exclusively use proceeds from green financing for defined projects in line with the EU Taxonomy Regulation. The Taxonomy is a kind of sustainability certificate for companies that is intended to promote investments in environmentally sustainable technologies. The projects include, for example, investments for the development of low-emission products, the construction of energy-efficient buildings and the installation of photovoltaic systems and charging stations for electric cars at the locations. After issuing financial instruments, Dürr AG will report annually on the use of proceeds for green projects. This ensures transparency for investors and the public.
In addition, Dürr AG has 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 the Dürr Group’s climate strategy. By 2030, the company aims to reduce its greenhouse gas emissions by 70% and emissions from the upstream and downstream value chain by at least 15%.
By linking climate strategy and corporate financing, Dürr AG underlines its commitment to the 1.5°C target stipulated by the Paris Climate Agreement. In addition, the company is committed to improving its sustainability rating prepared by the ISS ESG agency. The aim is to achieve “Prime” status by 2025, thus joining the circle of the best companies in the mechanical and plant engineering industry.
The → Sustainable Finance Framework is in line with the guidelines of the International Capital Market Association (ICMA) and the Loan Market Association (LMA). These guidelines, known as the Green Bond Principles (2021) and Green Loan Principles (2021), are voluntary standards for sustainable corporate financing. ISS ESG has prepared an independent second party opinion for the Sustainable Finance Framework. This second party opinion confirms that the Sustainable Finance Framework is consistent with the aforementioned guidelines and with the EU Taxonomy, and that the selected indicators and target values are material and ambitious.