The Benefits of Responsible Finance

To fund ongoing decarbonization efforts, Heidelberg Materials introduced a new Green Finance Framework, which is aligned with the most recent best market practices and standards. 

The company intends to issue Green Bonds to finance and/or refinance assets and capital expenditure associated with economic activities that meet or will meet the eligibility criteria defined in the Green Finance Framework. This will complement the sustainable finance portfolio contributing to reach Heidelberg’s target to increase the share of sustainable financial instruments to more than 70% by 2025.

“With the Green Finance Framework, we have set another cornerstone to cover our funding needs for the years to come,” said Heidelberg Materials financial officer René Aldach. “The framework reflects the continued confidence in our strong cashflow generation and enables us to fund sustainable projects and further decarbonize our business. The new framework underlines our position as front runner of decarbonization in our industry.”

Heidelberg Materials’ Green Finance Framework is based on the latest version of the International Capital Market Association’s Green Bond Principles and the Loan Market Association’s Green Loan Principles.

Heidelberg Materials is to be commended for this effort. They are not the first to adopt this.

Holcim announced sustainability-linked notes in 2020. Cemex recently updated its sustainability-linked financing framework to align with its more ambitious 2030 decarbonization targets, announced in November 2022 and validated by the Science-Based Targets initiative (SBTi) for alignment under their 1.5°C scenario, the most ambitious pathway defined for the cement industry.

This is known in the common vernacular as “putting your money where your mouth is.” It is one thing to pay lip service to sustainable practices, but quite another to fund it.

The cement industry doesn’t get enough credit for engaging in responsible financial leadership. It’s about time the world hears a little bit more about it.

Mark S. Kuhar, editor
[email protected]
(330) 722‐4081
X: @editormarkkuhar

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