Munters links sustainability goals to bank loans

As part of our quest to become a more sustainable company, we have added three environmental, social and governance (ESG) goals to our bank loans.

In the financial market, this type of financing is called sustainability-linked loans. It is meant to facilitate and support environmentally and socially sustainable economic activity and growth.  

“Sustainability should be part of everything we do and this of course also applies to the financing of the company,” says Karin Bergman, Vice President Group Treasury at Munters. “This is an important step in our work to optimize the company’s capital structure and at the same time contribute positively to our sustainability journey. I strongly believe that the sustainability-linked loan will help us to achieve our very ambitious goals.”

As part of the refinancing agreement that was finalized in June, we have committed to increasing:

• the number of women in leading positions
• the proportion of renewable electricity used in our production facilities
• the proportion of service activities in relation to our total net sales 

“It may not seem like a sustainability target to increase services, but growing services faster than equipment sales can make a significant contribution to reducing CO2e emissions in our value chain,” says Bergman. “Compared to investing in new equipment, it is often more economical for the customer and sustainable overall to upgrade existing equipment.”

The targets are set with annual sub-targets until the loans mature in 2026. Progress will be reported annually to the bank group and the interest rate will be adjusted depending on how we perform.

“It has been a rewarding journey to work cross-functionally on an agreement that we believe will be successful,” says Bergman

We are on an exciting journey. Read more about our ambitions for our sustainability work.