Decathlon integrates ESG criteria into its credit lines
Decathlon has chosen to link the cost of it’s ﬁnancing to its environmental and social performance by integrating its sustainable development criteria into its credit lines.
This inaugural operation, worth 125 million euros, was concluded through an amendment to the Crédit Agricole CIB and Natixis ﬁnancing contracts. Decathlon mandated EthiFinance as the extra-ﬁnancial analysis and consulting agency to carry out the second party opinion on the relevance of its environmental and social indicators.
Decathlon’s sustainable development strategies and actions are therefore taken into account in its ﬁnancing, making it possible to link the ESG performance of Decathlon to the economic performance of the company.
Decathlon's credit now includes a credit margin adjustment mechanism, reviewed at least once a year, based on six ESG KPIs which are audited as part of the Extra-Financial Performance Declaration by external third party Mazars and validated through a second party opinion by the Ethiﬁnance agency.
The six indicators representative of the company's sustainable development strategies and actions are:
- the satisfaction if its employees,
- the satisfaction of its sports users,
- the level of human responsibility in production of its suppliers,
- the level of environmental responsibility in production of its suppliers,
- the reduction in intensity of CO2 emissions by product sold,
- the development of environmental labeling of Decathlon branded products
The beneﬁts that Decathlon or Natixis / Crédit Agricole CIB could recover depending on ESG performance will be redistributed to associations or projects of a societal or environmental nature.
“The Bank is proud to support Decathlon in defining these engaging indicators that reflect the group’s corporate responsibility throughout its value chain. Decathlon places at the heart of its financing strategy: its employees, its purchasing policy, its relationship with its users and the management of its environmental footprint.”
Philippe Barraud, Senior Banker
See the full press release below: