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Henkel more responsible than ever

Published on : Thursday, July 23, 2020

Henkel is the first company to achieve a plastic waste reduction bond and proceed a step towards sustainability in a responsible way. As the first company globally, Henkel concluded a plastic waste reduction bond. The proceeds from this bond, a private placement with Japanese insurance companies Dai-ichi Life and Dai-ichi Frontier Life, will be specifically allocated to projects and expenditures related to Henkel’s activities to reduce plastic waste. The bond has a total volume of 70 million US dollars and a maturity of five years.

The plastic waste reduction bond underlines Henkel’s commitment to foster a circular economy and reduce plastic waste and hence to Sustainable Finance. At the same time, it provides the opportunity for additional learnings from financial products which include sustainability features. In 2018, Henkel was the first company in Germany to conclude a syndicated ‘Sustainability linked Loan’, a credit facility linked to Henkel’s performance in three independent sustainability ratings.

“Sustainability is not only firmly embedded in our strategic framework for the future but also increasingly relevant for investors and the financial markets,” said Henkel CFO Marco Swoboda. “We are proud to be the first corporate issuer of a plastic waste reduction bond, once more demonstrating our ability to conclude innovative sustainable investment instruments at attractive terms. By linking financing concepts to our plastic waste reduction initiatives, the Finance team shows its continuous commitment to actively contributing to our sustainability agenda.”

“Plastic waste is one of the biggest environmental challenges globally. We have reaffirmed our clear commitment to accelerate our sustainability actions and are working towards ambitious targets for reducing plastic waste and fostering a circular economy,” adds Sylvie Nicol, Member of the Henkel Management Board responsible for Human Resources and Sustainability. “This plastic waste reduction bond is a strong signal of our conviction that especially in times like these, in midst of the current COVID-19 crisis, we need to step up our efforts to promote sustainable solutions and concepts across the whole organization and along the entire value chain.”

Initiatives and partnerships to reduce plastic waste
The bond proceeds will contribute to finance key projects and activities in line with Henkel’s packaging targets for 2025. By then, 100 percent of the company’s packaging will be recyclable or reusable*, the amount of fossil-based virgin plastics will be reduced by 50 percent and Henkel wants to help prevent waste from being disposed in the environment. Next to developing sustainable packaging solutions, Henkel is engaged in several partnerships and cross-industry initiatives that aim to drive innovation in packaging development and the transition towards a circular economy. For example, the company is a founding member of the Alliance to End Plastic Waste (AEPW) and partner of the Plastic Bank.

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