Treasury Wine Estates leads the way with the first sustainability-linked loans in Asia-Pacific


December 17 – Treasury Wine Estates Ltd (TWE) today announced that the company is moving US $ 1 billion (AU $ 1.4 billion) from financial loans into sustainability-related loans.

This is one of the largest sustainability-related loans in Asia-Pacific and the first for a wine company in the region, as TWE’s global headquarters are in Melbourne, Australia.

Treasury Wine Estates, Americas Viticulture Research and Technical Sustainability Director Will Drayton said the high-end winemaker is delivering on his commitment to a lower-carbon future.

“We have set ambitious targets to be supplied with 100% renewable electricity by 2024 and achieve zero net emissions (scope 1 and 2) by 2030. The transfer of a substantial part of our existing loans to loans linked to sustainable development is an additional motivation for our teams. advancing towards our sustainable development goals and cultivating a better future for all, ”said Mr. Drayton.

As part of the sustainability loans, TWE will receive financial incentives as it progresses and as it achieves a number of its sustainability goals, including:

  • 100% renewable electricity by 2024;
  • Reduction of greenhouse gas emissions;
  • Undertake a comprehensive review of water use and watershed footprint in F22; and
  • 50% female in senior management and 42% female representation overall, by 2025.

“Setting sustainability goals is important, but to really make a difference, we need to embed sustainability throughout the company. Integrating sustainability into our financial framework is a key step in holding ourselves accountable and building a long-term resilient business.

“We know that the American wine industry has a carbon neutral future in sight and we hope that TWE can demonstrate a way in which winemakers can integrate sustainability into their business plans,” said Mr. Drayton.

Today’s announcement is part of TWE’s commitment to sustainability, which focuses on building a resilient business, promoting healthy and inclusive communities, and producing sustainable wine. Recent initiatives including launching a global policy on domestic and family violence, becoming a founding member of the Sustainable Wine Roundtable and joining the global renewable energy initiative RE100.

About Sustainable Development Loans (SLLs)

Sustainability Linked Lending (SLL) incentivizes borrowers to improve their sustainability profile by linking their performance to one or more Sustainability Performance Objectives (SPTs).

SLLs align the borrower’s performance against SPTs to an adjustment of the loan margin over the life of a loan. For example, a favorable performance would lead to a reduction in the line of credit while an underperformance would lead to an increase.

SPTs are agreed between the borrower and the financial lender (s) and generally align closely with the borrower’s sustainability strategy, focus on governance, and internal reporting on KPI.

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