RS Group signs £400 million refinanced loan
RS Group plc has signed a sustainability-linked loan (SLL) to "further strengthen the company’s commitment to its 2030 environmental, social and governance (ESG) action plan", a press release states.
The refinanced SLL has increased from GBP 300 to 400 million, and its maturity is extended to five years at similar terms to the previous loan that was agreed in October 2021. It is directly linked to the achievement of three of the company’s most material 2030 ESG actions. These are the reduction of its direct carbon emissions (Scope 1 and 2 CO2 emissions), packaging intensity, and the percentage of management that are women.
“We are delighted to have realised this sustainability-linked loan once more. Not only does it remove future refinancing risk during these economically volatile times, it also directly supports our 2030 ESG action plan to be a more sustainable and responsible business - both for our Company and our industry. We are proud to have made significant progress against the three ESG KPIs related to our sustainability-linked loan", aid Andrea Barrett, VP Social Responsibility and Sustainability at RS Group.
The prevalence and importance of sustainability-linked loans has significantly increased over the past few years. Their purpose is to facilitate and support environmentally and socially sustainable economic activity and growth for businesses by incentivising the achievement of predetermined sustainability performance objectives. These objectives are measured using sustainability performance targets that include key performance indicators or external ratings that can measure improvements in a company’s sustainability profile.