The Nordic Investment Bank (NIB) signs a EUR 100 million eight-year sustainability-linked loan agreement with Pandora, the world’s largest jewellery brand. The loan is linked to Pandora’s sustainability performance and targets related to circular materials and climate.
NIB and Pandora have agreed on two key performance indicators (KPIs) to be followed up. Pandora is committed to leadership in sustainability and the KPIs are closely linked to Pandora’s sustainability strategy.
The margin under the loan agreement can be adjusted, based on Pandora’s progress on: 1) the Company using only recycled gold and silver certified against an internationally acclaimed recycled metals standard in its jewellery production by 2025, and 2) halving the total greenhouse gas emissions across its own operations and value chain by 2030. Value-chain emissions outside companies’ own operations represent the largest portion of companies’ carbon footprint in many sectors. Therefore, Pandora’s target, including scope 3 emissions, can have a significant wider value chain impact.
“With this sustainability-linked loan, NIB can support a company that has ambitious sustainability targets, including a science-based target aligned with limiting global warming to 1.5°C. Linking financing to sustainability performance underlines how integrated sustainability is to Pandora’s strategy and operations”, says André Küüsvek, NIB’s President & CEO.
”The loan will support Pandora’s growth strategy by further improving our funding and liquidity position. By connecting the terms to our sustainability targets, we create a clear incentive to reach our goal of becoming a low-carbon and circular business. The link also confirms the financial community’s appreciation of our sustainability programme,” says Anders Boyer, CFO at Pandora.
The progress towards these targets will be measured annually using the two selected KPIs and Pandora will disclose its performance in its sustainability report. Depending on the achievement of these targets, the pricing of the loan will either decrease or increase.
Pandora is the world's largest jewellery brand and is listed on the Nasdaq Copenhagen stock exchange. The company designs, manufactures and markets hand-finished jewellery made from high-quality materials at affordable prices. Pandora jewellery is sold in more than 100 countries. Headquartered in Copenhagen, Denmark, Pandora employs 27,000 people worldwide and crafts its jewellery at two LEED-certified facilities in Thailand.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.