Royal FloraHolland has taken out its first Sustainability Linked Loan: a loan in which the interest rate is linked to the achievement of sustainability goals. This is an important milestone for the cooperative. The loan is part of the €210 million refinancing that was agreed upon last summer for the next seven years. Thanks to additional and ambitious sustainability agreements with the banking syndicate, the financing has now officially been converted into a Sustainability Linked Loan.
With this Sustainability Linked Loan, Royal FloraHolland and the banks involved are emphasizing the great importance of sustainability for both the cooperative and the floriculture sector as a whole. In doing so, Royal FloraHolland is aligning itself with the goals of the Paris Climate Agreement and the guidelines of the Dutch Green Building Council. The established KPIs focus on making Royal FloraHolland itself more sustainable, as well as the sector as a whole. There are two KPIs for our own activities: one aimed at saving energy in buildings and installations, and one at improving energy efficiency. In addition, there is a KPI for the percentage of product turnover that is certified according to the FSI Basket of Standards.
KPIs for Royal FloraHolland and the entire sector
"We can be proud of this milestone. We have set ourselves ambitious KPIs that contribute to a better world. The fact that our refinancing has now been officially recognized as a Sustainability Linked Loan is the result of hard work and an intensive process with the banks that previously placed their trust in us with the refinancing," says David van Mechelen, Chief Financial Officer of Royal FloraHolland. "We are focusing on sustainability with a major investment program, including efforts to make our buildings and installations more sustainable. This includes replacing gas-fired boilers with heat pump installations, installing solar panels on as many roofs as possible, and intelligently recovering heat from installations for reuse," he adds.
Reducing the carbon footprint
Achieving the agreed KPIs also yields an interest advantage. David van Mechelen says, "That interest advantage is a nice bonus, but it's mainly about becoming more sustainable. We want to reduce our footprint and contribute to a more sustainable world. We do this not only within our own company, but also together with the sector. The more we work together as a sector, the greater the impact. The banks emphatically recognize the importance of this."
Intrinsic motivation
ABN AMRO was appointed Sustainability Coordinator by the syndicate (ING, Rabobank and ABN AMRO) and in this role supported Royal FloraHolland in the process of realizing the Sustainability Linked Loan. Jan Droppers, Senior Relationship Manager at ABN AMRO, says: 'We appreciate Royal FloraHolland's ambition, effort and dedication in obtaining this classification. This is about more than a potential interest rate advantage; it is based on an intrinsic motivation to contribute to international sustainability objectives. The way in which Royal FloraHolland has worked with its banks confirms its drive to make a difference in the area of sustainability.'
For more information:
Royal FloraHolland
www.royalfloraholland.com