The French drinks giant Pernod Ricard has signed its first sustainability-linked loan, which will see it benefit from better rates if it exceeds or meets its environmental targets.
The brand, which includes well-known drinks brands such as Absolut, Malibu and Havana club, has said that the loan, worth around £1.8bn, will require it to align with its 2022 sustainability framework.
The business will need to fulfil the plan’s targets for at least halving its own direct and indirect greenhouse gas emissions, and emissions from its value chain by 2030.
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Pernod Ricard chief sustainability officer Vanessa Wright said: “We’re committed to preserving the world’s natural resources by reducing carbon emissions, water consumption and waste throughout our value chain.
“The group’s recent sustainability-linked facility is another demonstration of our drive to reduce our environmental footprint and protect the natural ecosystems, where we source all ingredients that make our iconic brands.”
Sustainability-linked loans are loans where a portion of the interest is dependent on meeting climate change targets, as well as green bonds they are part of the wider green financial industry movement.
Pernod Ricard is not the only brand to have sustainability-linked investments. Tesco took on its first and second sustainability bonds in 2021.
