Smurfit Kappa operates a circular business model which puts us at the heart of the circular economy.
A deep understanding of the business environment enables us to increasingly integrate in the circular economy and drive sustainability in all areas of our value chain positively impacting Planet, People and Impactful Business. Our Sustainable Finance approach further integrates the sustainability ambitions at the core of our business model into our funding strategy.
At the 2021 Treasury Management International Awards (TMI), Smurfit Kappa was awarded the 'Best Sustainable Finance project' in the Treasury4Good category, further recognition of the leadership we are demonstrating in the field of sustainability.
Revolving Credit Facility ("RCF")
In 2020, Smurfit Kappa incorporated five key ESG objectives into our financing through converting our €1.35 billion multi-bank RCF into a sustainability linked loan. The margin on our RCF is linked to the achievement of our five key performance indicators on Climate Change, Forest, Water, Waste and Health & Safety. All five targets need to be achieved in order to attain maximum margin benefit.
Green Finance Framework
In 2021, Smurfit Kappa launched the Green Finance Framework which is reflective of the sustainable nature of the Group’s business model. The eligibility criteria span the geographic scope of the Group's operations and take into account its efforts to produce circular products, using certified sustainable raw materials and implementing circular production processes that are subject to continuous improvement, both in terms of environmental and social metrics. As such, Smurfit Kappa's approach to sustainable financing also mirrors what the Group is, a global business which places sustainability at the centre of its operating model.