Finance & Treasury
Environmental, social and governance (ESG) considerations are key to many of LDC’s investment decisions and funding strategies. As we continue to embed sustainability in our financing model, signing credit lines with pricing mechanisms linked to ESG performance, we invest in sustainable agri-economic activities and projects.
Aligning With Environmental Targets
A portion of LDC’s funding needs are financed through regional syndicated Revolving Credit Facilities (RCFs), each with a sustainability-linked pricing mechanism that connects the RCF interest rate with LDC’s performance against annual targets related to environmental key performance indicators (KPIs): CO2 emissions, electricity and energy consumption, water usage and solid waste generation.
In September 2022, LDC also raised a JPY10 billion sustainability-linked private placement with a Japanese investor, including a sustainability-linked pricing mechanism whereby the interest rate is linked to performance against the same environmental KPIs.
Boost for Juice Sustainability
In July 2022, LDC signed a sustainability-linked, 10-year US$40 million term loan facility with Proparco, a subsidiary of Agence Française de Développement Group that focuses on private sector development.
A significant share of the funds has been allocated to the capital expenditure needs of LDC’s Juice business for climate change impact mitigation and sustainable development projects.
This is our first loan facility to include both environmental and social KPIs, with the latter linked to LDC’s efforts to help citrus fruit suppliers attain SAI Platform silver or gold grade verification, with a target to increase volumes sourced from suppliers applying verified sustainable farming practices.
Supporting Zero Deforestation Goals
LDC’s long-term investment in sustainability projects and ESG commitments have increased support from partners and investors such as the World Bank Group’s International Finance Corporation (IFC).
In September 2022, we closed a US$275 million loan with IFC and a syndicate of international banks, the requirements of which align with LDC’s commitment to eliminate deforestation and conversion of native vegetation for agricultural purposes from all our supply lines by the end of 2025.
The proceeds of this facility will exclusively finance soy or corn purchases from Brazilian farms that comply with both LDC and IFC’s rigorous ESG requirements, and can demonstrate zero deforestation and conversion of native vegetation.
You may also be interested in
Responsible Sourcing
We began work toward a Group-wide responsible sourcing policy and grievance protocol.
Land Use Change
Aiming to conserve natural habitats and resources we all depend on, we pursued our work to eliminate deforestation and native vegetation conversion for agricultural purposes from our supply chains.
Juice
Signed a sustainability-linked 10-year US$40 million term loan facility and planted more than 28,500 trees.