Borrowing $180 million, T&G Global has announced it has signed Aotearoa New Zealand’s first sustainability-linked loan in the horticulture sector.
The three-year loan is the first of its kind in New Zealand horticulture and commits T&G to a science-based greenhouse gas emissions reduction target that aligns with limiting the global average temperature increase to 1.5 degrees Celsius above preindustrial levels, according to a news release.
“We’re committed to making positive changes and transitioning to a healthier and more sustainable future,” Gareth Edgecombe, chief executive officer with T&G, said in the release. “Our sustainability-linked loan and its ambitious targets [demonstrate] our commitment to embracing sustainable practices and meeting global consumer needs.”
The loan requires T&G to undertake a comprehensive climate risk adaptation plan to enable T&G to adapt to the impacts of a changing climate and create permanent job opportunities and career pathways to help boost regional development, the release said.
As part of the loan financing, the release said T&G will pay lower loan costs if it achieves the sustainability targets and will have to pay penalties if these aren’t met. The targets are:
- Key performance indicator one: climate change adaption. T&G will undertake a detailed climate change risk assessment (aligned to New Zealand’s external reporting board requirements), including conducting climate risk-related scenario analysis.
- Key performance indicator two: climate change mitigation. Reduction of greenhouse gas emissions by a minimum of 2.5% per year. T&G also commits to set a science-based target aligned to 1.5 degrees Celsius for all of its greenhouse gas emissions, and have that target validated by the science-based targets initiative.
- Key performance indicator three: create permanent employment opportunities and career pathways. T&G will create new permanent employment opportunities in its Hastings apple growing business, as well as provide its permanent apples operational team with increased internal promotion opportunities, as well as career progression pathways.
Doug Bygrave, T&G chief financial officer, said in the release that the loan gives the company incentives to invest in climate change mitigation and adaptation activities.
“It’s a big challenge, and our targets in the loan reflect our ambition to limit our impact and adapt,” he said in the release.
