Heidelberg Materials has established a Green Finance as well as Sustainability-Linked Financing Framework to align the funding needs with the sustainability strategy of the company. We strongly believe that sustainable finance is an effective tool to channel investments to projects that demonstrate environmental benefits and thereby contribute to the achievement of the Paris Climate Agreement as well as UN Sustainable Development Goals (“UN SDG”). Our aim is to increase the share of our sustainable financial instruments to over 70% by 2025. We are currently at 50% (2022: 44%).
Both Frameworks have been established as a platform to issue various financial instruments, such as bonds (including private placements), commercial paper, loans, debt certificates, and other use of proceeds or sustainability-linked financial instruments, in various formats and currencies.
Heidelberg Materials is a pioneer in the field of commercial paper (CP, short-term bearer bonds of a money market character) with a sustainable performance target. The CP programme is also linked to the reduction of specific CO₂ emissions per tonne of cementitious material in accordance with the 2026 target set out in the Sustainability-Linked Financing Framework. If we are 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 2023, we placed sustainability-linked bonds with a total issue volume of €1.5 billion and linked the bond coupons to the industry’s most ambitious climate targets. The interest is depended on the development of specific CO₂ emissions per tonne of cementitious material up to 2026 as well as 2030.
The Green Finance Framework complements the sustainable financing mix of Heidelberg Materials. The proceeds from financing instruments issued under this framework will be used for Eligible Green Projects which meet or will meet the Eligibility Criteria linked to climate change mitigation as well as transition to a circular economy.
