News Environment & Sustainability
Sappi announces first sustainability-linked financing facility

Sappi’s international Revolving Credit Facility (RCF) of EUR 515 million benefits from the group’s newly developed Sustainable Financing Framework.

Sustainability and moving towards a circular economy underpin Sappi’s business strategy. Sappi was included in the JSE SRI Index, the FTSE4Good index, by various ESG rating agencies including the ESG Prime Status from ISS-Oekom as well as third-party forestry and chain-of-custody certification by the Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC)² and the Ecovadis Platinum level rating for its North American, European and Southern African regional operations.

Sappi’s science-based targets had been verified by the Science Based Targets initiative (SBTi) recently, building on its commitment to the UN Sustainable Development Goals. As the next step, Sappi is creating a bridge between its financing and sustainability strategies to confirm the importance of sustainability-linked financing solutions as integral to the company’s overall strategy.

“This first sustainability-linked financing facility is an important strategic step for Sappi and supports our long-term vision to be a sustainable business with an ambitious sustainability strategy,” said Glen Pearce, Sappi Group CFO.

He added, “Sappi’s recently renewed international Revolving Credit Facility (RCF) is our first financing facility with sustainability-linked KPIs. The new facility of EUR 515million matures in February 2027 and comprises a consortium of eight relationship banks. The RCF was structured with a margin adjustment mechanism, linked to progress in achieving the KPIs. The newly adopted Sustainable Financing Framework will be used to guide any sustainability-linked characteristics of future financing solutions.”

The framework was verified by ISS ESG with a second-party opinion that defines four material sustainability KPIs and provides a basis for future KPI-linked credit and capital market activities of the group. The KPIs focus on decreasing specific GHG (Scope 1 + 2) emissions by 18 percent in 2025; ensuring that certified fibre supplied to Sappi mills is in excess of 75 percent every year; reducing landfill solid waste disposal by 15 percent; and securing zero workplace injuries (lost time injury frequency rate) for own employees.