NIB and Epiroc agree on sustainability-linked financing
The Nordic Investment Bank (NIB) and Epiroc AB, the Sweden-based global mining and construction equipment manufacturer and service provider, have signed a ten-year USD 150 million (approx. EUR 136 million) sustainability-linked loan. The loan is connected to Epiroc’s climate targets, which support the decarbonisation of the mining industry.
Epiroc aims to significantly reduce absolute carbon emissions from its operations and the use of its sold products, as well as to transform its product offering to include a full range of emission-free alternatives by 2030. The targets related to its own operations and the use of its sold products have been validated by the Science Based Targets initiative (SBTi) and are in line with limiting global warming to 1.5°C.
The NIB loan agreement includes three key performance indicators (KPIs) for Epiroc’s sustainability goals, which will be followed-up annually for progress tracking and interest rate margin adjustments:
- KPI 1: reduce absolute Scope 1 and 2 GHG emissions by 50% from the baseline year 2019 to 2030;
- KPI 2: reduce absolute Scope 3 GHG emissions from the use of sold products by 50% from the baseline year 2019 to 2030;
- KPI 3: achieve a product offering that includes emission-free alternatives for the full product range by 2030.
“NIB’s financing is linked to Epiroc’s highly ambitious, industry-leading sustainability targets. Our cooperation showcases how decisive business actions and timely financial instruments can help decarbonise hard-to-abate sectors such as mining,” says André Küüsvek, NIB President and CEO.
“Epiroc puts a strong focus on providing equipment and solutions that lower emissions significantly,” says Håkan Folin, Epiroc’s Chief Financial Officer. “This financing, which is linked to how we progress on our ambitious 2030 sustainability goals, will support our continuous development of innovative products and solutions that lower emissions and strengthen safety and productivity for our customers and in our own operations.”
Epiroc has already reduced its Scopes 1 and 2 emissions significantly and will continue to ensure low carbon operations when entering new markets. Meanwhile, the Scope 3 emissions account for more than 99% of Epiroc’s total emissions, with approximately 83% deriving from customers using their products. By halving these emissions, the company will substantially reduce the impact on the environment within the industry.
At the same time, Epiroc’s aim of offering a full range of emission-free alternatives by 2025 for underground and by 2030 for surface operations will enable their customers to further lower their carbon footprint as well as reduce operational costs.
Epiroc offers equipment, services and solutions for the mining and construction industries, including for rock drilling, rock excavation, rock reinforcement, haulage, exploration, tunnelling, construction, quarrying, deconstruction, and recycling. The company has approximately 19,000 employees serving customers in around 150 countries.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s. www.nib.int
For further information, please contact:
Liisa Vuorinen, Senior Banker, Industry & Real Estate, at +358 10 618 0248, Liisa.Vuorinen@nib.int
Vytautas Brazaitis, Senior Communications Officer, at +358 10 618 0235, Vytautas.Brazaitis@nib.int
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