Post by account_disabled on Feb 20, 2024 2:41:10 GMT -6
The inaugural €600 million transaction has been supported by BNP Paribas – one of the leading banks in Europe and France – and is considered the first in the luxury sector to be associated with the Sustainability Linked Bond Principles. International Capital Markets Association (ICMA) , which provide guidelines for companies to improve environmental information and disclosure to increase access to capital for projects that can reduce emissions. The bond will help Chanel make progress in meeting the carbon commitments that have been approved by the Science-Based Targets Initiative (SBTi), in line with the 1.5C pathway of the Paris Agreement. The science-based targets were announced in March and cover the French multinational's Scope 1 (direct) and Scope 2 (energy-related) emissions, with Chanel's commitment to halve its emissions by 2030. Chanel's commitment To meet the promised Scope 2 reduction, Chanel has committed to sourcing 100% renewable electricity in its global operations by 2025. The company sources 41% of its electricity consumption from renewable sources in 2019 and expects this proportion to reach 97% by the end of 2021 as it invests in a combination of on-site arrangements, new tariffs and power purchase agreements ( PPA). Regarding scope 3 (indirect) emissions, the new targets include the intention to reduce supply chain emissions by 40% by 2030, compared to the 2018 baseline, on a “per product sold” basis. «, or a reduction of 10% in absolute terms.
Chanel's philosophy is the creation of long-term value for the company and for society. This financing is fully in line with these principles. With the launch of these bonds, Chanel hopes to support the development of the sustainable financing market and the broader social and environmental progress that this type of financing can promote. There is growing recognition among investors that they have a role to play in helping to address climate change, and we look forward to engaging with them. Philippe Blondiaux, CFO of Chanel. Funding transitions According Europe Cell Phone Number List to BNP Paribas, Chanel is the first unrated issuer to have a set of public bonds linked to sustainability aspirations. The way the bonds are aligned with the ICMA also means that investors will better understand how to support the luxury sector with long-term decarbonisation through innovative financing. The bank itself is taking steps to accelerate the transition to low carbon emissions. Last year, BNP Paribas pledged to stop all thermal coal financing globally by , with a provisional target of 2030 for EU Member States. The bank has since extended the commitment to end coal use by 2030 to all OECD countries, while maintaining the target for the rest of the countries. BNP Paribas will no longer accept new clients whose share of coal revenues represents more than 25%. BNP Paribas has also set a time-bound target for financing the development of renewable energy.
In the bank pledged to double its renewable energy financing to €15bn. Having surpassed that target in December 2018, the firm will now work to provide €18bn (£15.4 billion) cumulative for 2021. It is also part of a cohort of funders who have joined the “ green recovery alliance ” established by the European Parliament. Chanel is involved in a major transformation program to decarbonize its business model. Sustainability-linked bonds can be a game-changer in accelerating climate action, and Chanel has shown true leadership by creating an ambitious, transparent and scientific framework. We are honored to support Chanel by structuring and issuing this innovative transaction. Jean-Laurent Bonnafé, CEO of BNP Paribas. IHS Markit forecasts that the global economy will contract by 5.5% in 2020, as a result of COVID-19. This contraction is about triple what was felt during the 2008-9 financial crisis, and most financial researchers also expect a slower recovery. However, the pandemic appears to have put renewed emphasis on ESG or impact investing, particularly the “social” aspect. JP Morgan recently surveyed investors from 50 global institutions, representing a total of $12.9 trillion in assets under management, on how they expect COVID-19 to influence the future of ESG investing. 71% said they were likely to accelerate action. Similarly, Matt Mace at Edie has explored with a number of experts what green finance will look like after the pandemic, and the general conclusion is that the most likely path is a combination of economic, social and environmental measures and objectives.