NIB signs sustainability-linked loan with Kesko
The Nordic Investment Bank (NIB) and Finnish Kesko Oyj have signed a EUR 150 million 7-year loan linked to Kesko’s goal of reducing greenhouse gas emissions and food waste.
The loan will support Kesko’s ambition to minimise the impact on the climate and nature through own operations and its value chain. The interest rate margin on the sustainability-linked loan is tied to three key performance indicators (KPIs). The agreed KPIs are part of Kesko’s wider sustainability strategy.
“The trading sector has a significant impact on our everyday life and on the environment, and the industry’s sustainability efforts are much needed. NIB’s sustainability-linked lending aims to catalyse our customer’s sustainability transition, and we are happy to support Kesko on their journey,” says André Küüsvek, NIB President and CEO.
The agreed sustainability KPIs are:
- KPI 1: Reduction of absolute greenhouse gas emissions (GHG) from Kesko Group’s own operations (Scope 1) and from energy purchased and used by the group (Scope 2). The KPI is aligned with Kesko’s science-based targets to decrease absolute Scope 1 & 2 GHG emissions by 90% by 2030 from a 2020 baseline.
- KPI 2: Increase in the share of Kesko Group’s suppliers of goods and services that have publicly set GHG emission reduction targets approved by the Science Based Targets initiative (SBTi). The KPI is aligned with Kesko’s science-based targets that 67% of suppliers and service providers by spend have science-based targets by the end of 2026.
- KPI 3: Reduction of food waste generated in Kesko’s food retail operations (including K-Retailer food stores and Kesko’s own warehouses and logistics) in relation to the total food sold. The KPI is aligned with Kesko’s target to reduce food waste by 50% by 2030 from 2019 baseline.
NIB and Kesko have also agreed that the climate-related KPIs (KPI 1 and 2) in the loan shall be updated once Kesko has finalised the ongoing process of updating its science-based targets, and after the new targets have been approved by the Science Based Targets initiative.
”Sustainability is at the heart of Kesko’s strategy. Our objective is to enable sustainable choices for our customers and drive change throughout our value chain from production to consumption. We are very pleased to have signed a sustainability linked 7-year loan with NIB, which supports and promotes our sustainability efforts, especially when it comes to reducing our own and value chain’s greenhouse gas emissions as well as reducing food waste in our grocery trade operations,” says Anu Hämäläinen, Kesko’s Chief Financial Officer.
Kesko operates in grocery trade, building and technical trade, and car trade. Kesko's net sales total around EUR 12 billion and Kesko employs approximately 18,000 people. Kesko’s chain operations include approximately 1,800 stores in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania and Poland. Kesko’s shares are listed on Nasdaq Helsinki. Kesko and K-retailers together form K Group. K Group is the leading trading sector operator in Northern Europe and it employs approximately 45,000 people.
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.
For further information, please contact
Seppo Halttunen, Senior Client Executive, at +358 40 702 8810, seppo.halttunen@nib.int
Lotta Forssell, Senior Communications Officer, at +358 10 618 0498, lotta.forssell@nib.int