In July 2022, Sappi announced that our science-based targets had been verified by the Science Based Targets initiative (SBTi), building on our strong commitment to the UN Sustainable Development Goals. Now in an important further step, we have created our first Sustainable Financing Framework.
Glen Pearce, Sappi Group CFO, explains the significance of the move. "It's our first financing facility with sustainability-linked KPIs. Sappi's international revolving credit facility of EUR 515 million matures in February 2027 and comprises a consortium of eight relationship banks. The facility was structured with a margin adjustment mechanism, linked to progress in achieving the KPIs. The newly adopted Sustainable Financing Framework will now guide any sustainability-linked characteristics of future financing solutions."
The Framework was verified by ISS ESG with a second-party opinion that defines material sustainability KPIs and provides a basis for future KPI-linked credit and capital market activities for Sappi Group. These KPIs include:
This announcement follows other milestones in Sappi's sustainability journey such as our inclusion in the JSE SRI Index and the FTSE4Good index as well as receiving ESG Prime Status from the rating agency, ISS-Oekom. Sappi has also received third-party forestry and chain-of-custody certification by the Forest Stewardship Council™ (FSC™)* and Programme for the Endorsement of Forest Certification (PEFC).** We are proud to have achieved Platinum level rating from Ecovadis for our North American, European and Southern African regional operations.
*License number: FSC-N003159
**Licence code: PEFC/01-44-4