Sustainable Finance Framework

Henkel is further expanding its commitment to sustainable finance. The company has now defined a framework within which sustainable bonds can be placed in the future.

With this “Sustainable Finance Framework” Henkel creates a direct link between its sustainability strategy and its funding strategy. The framework enables the issuance of two types of bonds: sustainability-linked bonds and green bonds. For sustainability-linked bonds, financing costs are linked to the achievement of sustainability targets, while the proceeds from the issuance of green bonds are used for sustainable investments. The framework was reviewed by the independent ESG rating agency ISS ESG, which confirmed the environmental added value and the compliance of the framework with the Green Bond and Sustainability-Linked Bond Principles of the International Capital Market Association (ICMA).

Plastic waste reduction bond

Henkel takes another step in combining attractive corporate financing instruments with progress in sustainability: As the first company globally, Henkel concluded a plastic waste reduction bond. The proceeds from this bond, a private placement with Japanese insurance companies Dai-ichi Life and Dai-ichi Frontier Life, will be specifically allocated to projects and expenditures related to Henkel’s activities to reduce plastic waste. The bond has a total volume of 70 million US dollars and a maturity of five years.

The plastic waste reduction bond underlines Henkel’s commitment to foster a circular economy and reduce plastic waste and hence to Sustainable Finance. At the same time, it provides the opportunity for additional learnings from financial products which include sustainability features. In 2018, Henkel was the first company in Germany to conclude a syndicated ‘Sustainability linked Loan’, a credit facility linked to Henkel’s performance in three independent sustainability ratings.

Acting in conformity with applicable regulations; adherence to laws, rules, regulations and in-house or corporate codes of conduct. 

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