UPM signs a EUR 750 million revolving credit facility with a margin tied to long-term biodiversity and climate targets
UPM is one of the first companies to link the pricing mechanism of a syndicated revolving credit facility (RCF) to both biodiversity and climate targets. The margin of the RCF is tied to two key performance indicators (KPIs): • achievement of a net positive impact on biodiversity in the company’s own forests in Finland • a 65% reduction of CO2 emissions from fuels and purchased electricity by 2030 from 2015 levels, in line with UPM’s commitment to UN Business Ambition for 1.5°C. “Connecting UPM’s sustainability performance to our financing demonstrates the importance of responsible business practises to our long-term value creation. Sustainable forest management plays an important role in mitigating climate change, as it ensures material long-term CO2 sequestration and improves adaptation to global warming. Enhancing biodiversity is not only about preserving forests, but is also a crucial element in sustainable industrial use, taking into account a wide range of flora and fauna. UPM is committed to achieving a net positive impact on biodiversity and we have developed indicators and methods to monitor it,” says Tapio Korpeinen, CFO, UPM.