Canary Wharf Group (CWG) has linked financing with sustainability using its science-based target commitment. The £100,000,000 sustainability-linked revolving credit facility will support liquidity that aligns to a sustainability-linked framework.
Under the framework, CWG commits to reduce absolute Scope 1, 2 and 3 emissions from downstream leased assets by 65% by 2030 from a 2017 baseline and pledges that 60% of its suppliers, by emissions covering purchased good and services, will have science-based targets by 2025.
Canary Wharf Group has agreed to and signed the sustainability-linked financing framework with structuring support from Deutsche Bank and Société Générale. As part of the framework, the company has obtained a sustainability-linked revolving credit facility that satisfies stringent criteria, including setting incremental targets for the delivery of a science-based target.
CWG continues to implement wider sustainability principles including the delivery of space certified under appropriate schemes such as BREEAM, championing regeneration and retrofit, and demonstrating high-quality, sustainable office, retail, leisure and living space in London.
As the first real estate company to sign the Climate Pledge, a founding member of the Concrete Zero initiative and the first commercial district in the world two years ago to make a science-based carbon emission target, the framework announced last month illustrates the extent to which the group’s commitment to sustainability has now been deeply embedded within the business.
The group is pleased to have engaged with ISS-ESG who were able to provide an independent second party opinion (SPO) on the framework. The assessment concluded that CWG is ambitious against past performance and compared to real estate industry practices in terms of defining a GHG emissions reduction target. The SPO will be made publicly available on CWG’s corporate website.
Shobi Khan, Chief Executive of Canary Wharf Group said:
“Real estate is a significant source of carbon emissions, and the associated supply chain must pivot towards net zero quickly to mitigate the climate crisis. Our commitment to helping drive this shift is embodied within our science-based target, which now guides all Canary Wharf Group’s procurement and investment decisions. This finance framework is a key part of our efforts to turn ambition into action and we look forward to further collaboration with our supply chain partners to identify the solutions required to reduce our collective impact on the environment and reach net zero.”
Becky Worthington, Chief Financial Officer of Canary Wharf Group, said:
“Canary Wharf Group has made significant progress in sustainability targets as part of the journey to reduce Scope 1, 2 & 3 emissions. Our new sustainability-linked finance framework, supported by Deutsche Bank and Société Générale, will provide future opportunities to access debt markets at competitive terms whilst delivering against our committed sustainability targets.”
Supporting the framework Carla La Tona, ESG Capital Markets Advisory at Deutsche Bank added:
“Deutsche Bank is pleased to have assisted Canary Wharf Group with the establishment of its sustainability-linked financing framework as Sustainability Coordinator. The completion of this framework further reinforces the company’s strong commitment to achieving its ambitious sustainability objectives. The framework, which applies to any sustainability-linked financing instruments, showcases that Canary Wharf Group recognises the critical role it can play in addressing climate action as part of its broader sustainability strategy.”
Supporting the framework Demetrio Salorio, CEO London Branch & Group Country Head for the United Kingdom & Ireland at Société Générale, said:
“We are delighted to act as ESG coordinator to Canary Wharf Group on its sustainability-linked finance framework. Through its ambitious targets, CWG is putting sustainability on the table for procurement decisions and encouraging its suppliers to set science-based emission reduction goals. We are pleased to support CWG to meet these objectives as part of its net zero commitments.”
Find out more at group.canarywharf.com