Sweco Turns to Sustainability-Linked Financing in €400M Deal

Sweco has taken a major step in its sustainability journey by converting its recently refinanced €400 million revolving credit facility (RCF) into a sustainability-linked loan.

Signed in December 2024, the agreement marks a shift in how the leading European engineering and architecture consultancy approaches financing. The new facility, which replaces Sweco’s previous RCF, is aimed at general corporate purposes and acquisitions, but with an added layer of accountability. The annual interest costs on the loan are now directly tied to Sweco’s performance on key sustainability metrics.

“This sustainability-linked credit facility is a testimony to our long-term commitment to integrating sustainability in everything we do. We thank our bank partners for their renewed confidence and counsel in this important work,” said the CFO of Sweco, Olof Stålnacke.

The credit facility has a three-year term, with the option to extend twice by one year, subject to lender approval. The agreement was arranged with Sweco’s existing banking syndicate: SEB, Swedbank, and Svenska Handelsbanken, with SEB also acting as the sustainability coordinator.

Performance-Based Incentives

Under the new structure, Sweco’s annual interest payments will vary based on its ability to meet key performance indicators (KPIs) related to climate impact and workforce diversity. These KPIs include:

A 90% reduction in absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 2030, using 2020 as the baseline. This target has been validated by the Science-Based Targets initiative (SBTi).
A 30% reduction in absolute Scope 3 emissions from areas such as purchased goods, travel, and energy use, also by 2030, and SBTi-approved.
Achieving 40% female representation across the company by 2040, promoting greater gender equality within the workforce.

These sustainability targets reinforce Sweco’s ambition to lead by example in climate action and diversity, aligning financial strategy with long-term environmental and social goals.

Also Read: World's Largest Salmon Producer Inks €2.6bn Green Loan Deal

A Growing Trend

Sweco’s move mirrors a broader shift among companies integrating ESG (Environmental, Social, Governance) factors into financial instruments. By linking credit terms to sustainability goals, firms aim to drive meaningful progress while also signalling transparency and accountability to investors, partners, and clients.

With this step, Sweco positions itself as a design and consultancy leader and as a forward-thinking organization ready to tackle global sustainability challenges head-on.

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Source: News.cision.com