COWI has converted credit facilities for DKK 530 million in Danske Bank and Nordea into ESG-performance linked loan agreements.
COWI will pay the banks less for using its credit facilities if we reduce our greenhouse gas emissions from business travelling and if we meet our gender diversity target at senior levels. But we will also pay a higher premium if we miss these two targets. That's the short version of the conversion of a loan agreement that COWI has signed with Danske Bank and Nordea.
"At COWI, sustainability isn't just a checkbox on our to-do list - it's ingrained in every aspect of our operations. That's why it's only fitting for us to align our ESG performance to our financial performance. We are closing the loop meaning if we perform well within ESG, it is good for business," says Natalie Shaverdian Riise-Knudsen, Group CFO.
She adds that the two KPIs were chosen because of the current governance set-up and data availability. Both KPIs will use 2022 levels as baselines.
"We have a long-term plan for meeting our ESG targets but currently not all data is available, and we also maturing our governance within some areas. When this is in place the KPIs related to our credit facilities might change," she explains.