Henkel combines attractive financing instruments with sustainable development, being the first company in the world to close a plastic waste reduction voucher. The proceeds of this bond, a private placement with Japanese insurance companies Dai-ichi Life and Dai-ichi Frontier Life, will be specifically allocated to projects and expenses related to Henkel's activities to reduce plastic waste.
The bond has a total volume of $ 70 million and a maturity of five years. The plastic waste reduction voucher underscores Henkel's commitment to promoting a circular economy and therefore sustainable financing. At the same time, it provides the opportunity to obtain additional information on financial products related to the sustainability. In 2018, Henkel was the first company in Germany to conclude a syndicated 'Sustainability Linked Loan', a line of credit is linked to Henkel's performance in three independent sustainability rankings.
“Plastic waste is one of the biggest environmental challenges in the world. We have reaffirmed our clear commitment to accelerate our sustainability actions and are working towards ambitious goals to reduce plastic waste and foster a circular economy, ”he adds Sylvie Nicholas, member of the Henkel Board of Directors responsible for Human Resources and Sustainability. “This plastic waste reduction bonus is a clear sign of our belief that especially at times like these, amid the current Covid-19 crisis, we must intensify our efforts to promote sustainable concepts and solutions across the organization and across the entire value chain ”.
The proceeds from this bond will help finance key projects and activities in line with the objectives of the packaging from Henkel by 2025. By then, 100% of the company's packaging will be recyclable or reusable, the amount of virgin fossil plastics will be reduced by 50% and the company will help prevent waste from ending up in the environment. In addition to developing sustainable packaging solutions, Henkel participates in various cross-industry partnerships and initiatives that aim to drive innovation in packaging development and the transition to a circular economy. For example, the company is a founding member of the Alliance to End Plastic Waste (AEPW) and a partner of the Plastic Bank.
