Smurfit Kappa recently published its second annual Green Bond Allocation and Impact Report which provides details on the use of proceeds of its inaugural €1 bn dual-tranche Green Bond issued in September 2021.
The company’s Green Finance Framework is reflective of the sustainable nature of its business model, with eligibility criteria that span the geographic scope of the Group’s operations and take into account its strong circular business practices.
In accordance with Smurfit Kappa’s Green Finance Framework, the proceeds of the Green Bond were allocated to assets associated with the following categories:
Circular economy adapted products, production technologies and processes and/or certified eco-efficient projects (96%) contributing to:
- 6.8m tonnes of primarily post-consumer waste recycled in 2022;
- 76% recycled fibres in global production;
- 100% recycled fibres from certified FSC, PEFC or SFI sustainable sources;
- 4% reduction in waste sent to landfill versus 2020;
- 8% reduction in water intake versus 2020.
Environmentally sustainable management of living natural resources and land use (4%), contributing to:
- 100% forestry assets FSC certified, of which over 30% of forestry assets in Colombia are protected natural forests supporting biodiversity;
- 9.34 million tonnes of CO2 stored in forestry assets;
- 100% of wood used in production from certified sustainably managed forests.
Emer Murnane, Group Treasurer, Smurfit Kappa, said, “This report highlights our ongoing commitment to the integration of our corporate sustainability strategy into our capital structure and our continuous investment in circularity which is at the heart of our business. Through our green finance instruments, we aim to give debt investors the opportunity to invest in truly sustainable business practices, reporting transparently on our ambitious sustainability targets and the progress we are making towards achieving them.”
Garrett Quinn, Chief Sustainability Officer, Smurfit Kappa, added, “The report provides insight into our strategic approach to creating a sustainable future through responsible investment practices. It highlights examples of environmental and social investment projects and initiatives that have led to tangible positive impact. Through green bonds and sustainable finance, we are investing in a greener, bluer planet whilst creating economic value.”