Global chemical and specialty materials company Eastman Chemical Company announced that it has amended and extended its $1.5 billion five-year unsecured revolving credit facility, including the addition of sustainability-linked pricing terms ties to the company’s performance on reducing greenhouse gas (GHG) emissions, plastic waste recycling, and increasing the percent of women in professional or managerial roles.
Sustainability linked loans and securities are an emerging form of sustainable finance instruments, with attributes including interest payments tied to an issuer’s achievement of specific sustainability targets.
The sustainability attributes chosen for the amended credit facility align with Eastman’s recently launched Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More goals. Late last year, the company announced a series of 2030 sustainability commitments, including reducing absolute scope 1+2 GHG emissions by one-third, on the road to carbon neutrality by 2050, recycling of more than 500 million pounds of plastic waste annually via molecular recycling technologies, and reaching gender parity across all levels of the company.
Willie McLain, Senior Vice President and Chief Financial Officer at Eastman, said:
“Linking our revolving credit facility to our sustainability objectives supports our drive to create a sustainable and inclusive environment that holistically addresses climate change and the plastic waste crisis.”
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