Sustainability policies help Lenzing lower loan interest rates
Fibre manufacturer Lenzing has received an AA assessment from specialist ratings agency MSCI.
As a result the rate of interest the Austrian group has to pay on a €500 million bonded loan it took out in 2019 will now come down. The loan is linked to Lenzing’s sustainability performace. Lenzing said right away that it would donate the saving it makes from paying less interest.
The group’s chief finance officer, Thomas Obendrauf, insisted Lenzing was a pioneer and a role model in sustainability. He said: “We strongly believe that the fiber industry will have to change in order to meet the ecological and social demands of the future. The issue of sustainability has been firmly anchored in our strategy for many years and is fundamental to our commercial success.”
MSCI cited the company’s climate targets, which include the goal of halving its greenhouse gas emissions by 2030 and achieving climate neutrality by 2050, its approach to promoting a circular economy and good governance structure as the main reasons for upgrading its rating from A to AA.
