Supporting Far Eastern New Century Corporation with its First Sustainability-Linked Facilities
Crédit Agricole CIB is supporting a 3-year TWD 3 billion Sustainability-Linked Facilities to a leading polyester recycling company FENC. The margin of the facilities will be linked to FENC’s sustainability performance in line with its 2030 vision.
This is FENC’s first sustainability financing and the first sustainability-linked commercial paper (CP) programme in Asia and Taiwan. This landmark deal is important for the development of sustainability banking in the Asia-Pacific region.
FENC is committed to sustainability and has aligned its sustainability objectives: fostering robust governance; enabling unlimited innovation; navigating a green future; and creating inclusive society, with the United Nations’ Sustainable Development Goals.
To further demonstrate its concrete commitments, FENC has set quantitative targets on various environmental performance indicators including but not limited to reducing energy consumption per unit of production by 25%, lowering air pollutant emissions by 35%, and decreasing non-recyclable waste by 30% in 2030. By 2019, the Company has achieved 2020 targets of these three KPIs in advance.
Humphrey Cheng, President of Corporate Management for FENC, said “Sustainability is important to us and we consider it as one of our core development goals. As the world’s second largest polyester recycling company, FENC’s revenues on green products exceeding USD1.1 billion in 2019. Compared with general petrochemical raw materials, products made from polyester recycled raw materials reduce greenhouse gas emissions by 63%. Therefore, FENC avoids 900,000 tons of greenhouse gas emissions each year, which is equivalent to the carbon absorption of 2,300 Daan Forest Parks. In addition, 8.1 billion wasted PET bottles are reduced, in which can circulate the earth for 46.5 times.
Since 2016, FENC has taken various actions on protecting marine ecology in cooperation with international Non-Governmental Organisation Parley for the Oceans and sports brand on marine products recycling. To alleviate climate change, FENC adopts Task Force on Climate-related Financial Disclosures (TCFD) framework to assess the impact of climate change on company operation, and quantify its financial influences to be able to take measures accordingly.”
Laurent Proutière, Chief Executive Officer for Crédit Agricole CIB Taiwan branch, said, “FENC has integrated sustainable development into its business philosophy, core businesses and sustainability strategy blueprint. As a global precursor in sustainable financing, Crédit Agricole CIB is very proud to enhance its partnership with FENC and support them with their continuous ESG commitment.”
Dominique Duval, Head of Sustainable Banking in Asia-Pacific, added,“Crédit Agricole CIB is delighted to support FENC in its sustainable journey through financing structures combining FENC sustainable performance and optimised financing solutions and cost. This green and innovative transaction not only reinforces FENC’s commitment in sustainable development, but also emphasises the importance of Crédit Agricole CIB’s support in tackling climate change as well as the transition to a low carbon economy.”
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