Financing
In the Green Finance Framework and the Sustainability-Linked Financing Framework, Heidelberg Materials has two frameworks at its disposal that align the company’s financing requirements with its sustainability strategy. The Green Finance Framework introduced in May 2024 enables Heidelberg Materials to use green bonds to finance sustainability-related projects. The framework complements the Sustainability-Linked Financing Framework published in 2022, which can be used for the issue of various sustainability-linked financing instruments.
Heidelberg Materials is a pioneer in the field of commercial paper with a sustainable performance target. The CP programme is linked to the reduction of specific CO₂ emissions in accordance with the 2026 target set out in the Sustainability-Linked Financing Framework. If Heidelberg Materials is unable to reduce CO₂ emissions within the defined period and at the specified level, an additional annual interest payment must be donated to BirdLife Europe to promote biodiversity.
In addition to issuing sustainability-linked bonds totalling €1.5 billion in 2023, with interest coupons linked to Heidelberg Materials’ ambitious CO₂ emission reduction targets, the company was the first European manufacturer in the heavy building materials industry to issue green bonds in 2024 and most recently again in January 2026. The projects financed by these green bonds with a total volume of €1.8 billion, range from the modernisation of plants – including to increase the use of alternative fuels – to the further development of carbon capture technologies.
The share of our sustainable financing instruments currently stands at 62%, underlining our firm belief that sustainable financing is an effective tool to channel investments towards projects that contribute to the implementation of the Paris Agreement and the UN Sustainable Development Goals (UN SDGs).
Tax strategy
We are aware that tax revenues are an important cornerstone for financing government investments and expenditure and therefore for social cohesion in any given country. To secure our licence to operate, it is essential that we manage tax matters responsibly, comply with tax laws and regulations, and pay taxes in the countries where we are active and generate profits. Our tax strategy forms the basis for the implementation of our sustainable business activities. It is closely linked to our Group strategy and sustainability targets and applies to all subsidiaries worldwide. It is reflected in our Tax Principles & Values, which set out the values and standards that guide our actions with respect to taxation.
Our internal control processes and guidelines are designed to avoid any violations of laws, thereby protecting our company and our employees, averting any reputational damage, and fulfilling our social responsibility. The positions we take are based on an appropriate interpretation of tax laws and regulations as well as any relevant judgments and opinions. Our tax matters are handled by internal tax specialists or external tax consultants. Our tax processes and controls are subject to regular audits by internal and external specialists. Any significant findings and risks are reported to the Chief Financial Officer and the Audit Committee of the Supervisory Board.
We communicate openly and transparently with tax authorities and aim to inform them promptly about important transactions and any tax issues. We organise our business transactions on the basis of sound economic and legal facts, and do not use any aggressive or artificial tax arrangements. According to the list of shareholdings in the Annual and Sustainability Report 2025, Heidelberg Materials has subsidiaries in countries that are considered tax havens; these companies are known to the tax authorities and are not used for tax avoidance purposes.
