In March 2020, BNP
Paribas acted as sustainability coordinator for Finnish forest-based
bioindustry company UPM‘s €750 million revolving credit facility
(RCF).
UPM is one of the
first companies to link the pricing mechanism of an RCF to its biodiversity and
climate-related targets. The margin of the loan is tied to two key performance
indicators (KPIs):
- a net positive impact on biodiversity in the company’s forests in Finland
- a 65% reduction in CO2 emissions from fuels and purchased electricity between 2015 and 2030, in line with UPM’s commitment to the United Nations’ Business Ambition for 1.5°C.
The €750 million
credit facility is the first step in building the funding base for UPM’s
transformation projects. The five-year facility has two one-year-extension
options.
UPM is no newcomer to
work on biodiversity: it created its strategic biodiversity programme 20 years
ago!
