Holcim commits to 40 per cent sustainable financing by 2024

Holcim announces its commitment to reach at least 40 per cent of sustainable financing by 2024, putting climate action, water preservation and safety at the heart of its strategy. The company has accelerated this commitment with two new sustainability-linked financing transactions worth above CHF3bn (US$3.28bn). 

Holcim has joined the UNGC CFO Taskforce, alongside 60 companies representing a combined US$1.7trn in market capitalisation. The taskforce aligns members’ finance strategies with the UN Sustainable Development Goals (SDGs). 

Holcim CFO, Géraldine Picaud said: “Sustainability is at the core of what we do. That's why we set ourselves some of the most ambitious goals in our industry. Walking the talk, we are putting climate, water and safety at the heart of our financing strategy. To make a bigger impact, I am delighted to be a member of the UNGC CFO Taskforce to move this agenda forward with my peers.” 

Building on the company’s EUR850m sustainability-linked bond issued in November 2020, Holcim has completed two further transactions. In August 2021, it refinanced a EUR3bn syndicated credit line linking it to climate and safety, two of its core sustainability indicators, in line with the UN SDGs 8 (“Decent Work & Economic Growth”) and 13 (“Climate Action”). The cost of the credit facility will depend on the company’s achievement of its annual targets in these areas.

In September 2021, Holcim placed a new 10-year US$100m sustainability-linked bond, based on its 2030 CO₂ reduction target. The investor will be entitled to a higher coupon should the company not meet its climate objective. 

Following Holcim’s nature-positive strategy launch, it also added “specific freshwater withdrawal” in its cement operations, aligned with SDG 6 (“Clean Water and Sanitation”). ISS ESG agency views the new water KPI as relevant and material to Holcim and will accordingly issue an updated second-party opinion in the course of the month.