Conclusion enters into sustainability-linked loan
IT service provider links financing interest to sustainability ambitions
IT service provider Conclusion is converting its recently updated financing (announced earlier this year) to a sustainability-linked loan. This means that Conclusion’s sustainability performance is now linked to a bonus-malus system based on the loan’s interest rate. With this new form of financing, the IT service provider underlines its sustainability ambitions.
November 6th, 2023 | News | By: Conclusion
Sustainability is key to Conclusion’s business strategy
The sustainability-linked loan comprises a total of three quantified KPIs, which Conclusion defined in consultation with the banks involved as well as NPM Capital. The process was guided by ABN AMRO Bank N.V., the sustainability coordinator for the loan. The targets are fixed until 2029 for a period equal to the term of the loan. Conclusion deliberately chose to link one KPI to each pillar of its sustainability strategy: environmental, social and governance (ESG). During the process, the banks involved assessed whether the quantitative KPIs were in line with material sustainability themes and whether the targets were sufficiently ambitious. Conclusion will be reporting annually on the results achieved for each KPI.
Maaike Maranus, director of Sustainability & Support Services at Conclusion: “I am immensely proud that we are taking this step. The loan involves a substantial amount, so the bonus-malus system now linked to it has tangible substance. The fact that Conclusion does not shy away from attaching large financial consequences to the realization of ambitious sustainability goals emphasizes the prominence of sustainability within our company. Sustainable business practices are not limited to our sustainability department; they are an integral part of our company philosophy and strategy. We take our sustainability ambitions extremely seriously. We don’t just talk about them; we turn these ambitions into results.”
Emiel van Boxtel, CFO at Conclusion: “We deliberately chose for a portion of the interest on our loan to be linked to achieving our sustainability targets. These goals are firmly embedded in our overall business management and operating philosophy. As an organization, we want to pursue sustainable growth and contribute to a healthy world for people and the environment. Commitment is an important part of that. That is what we are emphasizing by entering into the sustainability-linked loan.”