Aurubis Links Factoring to Sustainability Criteria

Published on:
by KnowESG,

Aurubis AG

KnowESG_Aurubis
Image of Rainer Verhoeven, Aurubis Chief Financial Officer.

Aurubis, a leading global provider of non-ferrous metals and one of the largest copper recyclers worldwide, has now also linked its factoring programme with an initial volume of € 150 million over three years to ESG, environmental and social governance, i.e., social corporate governance. The company plans to successively raise the amount to € 300 million.

Following a syndicated credit line and a bonded loan, Aurubis is now linking another instrument to the development of its EcoValdis rating. As such, the largest part of the financing for the Aurubis Group is now tied to its sustainability performance.

Aurubis Chief Financial Officer Rainer Verhoeven said: "Sustainable action is not just a central component of our Group strategy; it is also essential to our understanding of who we are. So it only makes sense to apply this principle to all financing instruments as well. This is how we practice sustainability—not just in everyday business but also in all supporting functions—and it highlights how integral sustainability is to our corporate strategy."

Aurubis is linking the new factoring programme to its rating by the EcoVadis sustainability rating platform. Aurubis currently holds Gold Status with 73 out of 100 points, putting it among the top 2 % of companies in the non-ferrous metals industry.

EcoVadis’ annual assessment reflects Aurubis’ sustainability achievements, and the link means they now directly influence how the factoring interest rate is calculated. The multimetal provider receives more favourable factoring interest rates as its rating improves and vice versa; rates rise as the number of rating points drops. The link between the financing instrument and the EcoVadis rating thus represents a direct incentive for Aurubis to further advance its sustainability efforts.

For more sustainable finance news

Source: Aurubis

Share:
esg
esg
esg
esg

Sustainable Finance Headlines

NBB Wins Bahrain ESG Bank Again at Euromoney 2023

NBB Wins Bahrain ESG Bank Again at Euromoney 2023

CBD Commits to Carbon Neutrality by 2030

CBD Commits to Carbon Neutrality by 2030

NSW Helps Businesses Go Green with $6 Million

PFS ESG Course Launched for Financial Advisers

Rwanda Bank Launches Green Bond for Inclusive Growth

StorHub Leads Sustainability in Self Storage

Hallett Decarbonises Cement with CBA's Backing

CBA and Tesla Australia Partner on EV Financing

CREDEM Issues €500M Social Senior Bond

Citizens Financial Targets $50B Sustainable Finance