Epiroc Secures $150 Million Sustainability-Linked Loan to Drive Decarbonization in the Mining Industry

Epiroc Secures $150 Million Sustainability-Linked Loan to Drive Decarbonization in the Mining Industry

(IN BRIEF) Epiroc has secured a USD 150 million, ten-year sustainability-linked loan from the Nordic Investment Bank (NIB) to support its ambitious climate goals aimed at reducing carbon emissions in the mining industry. The agreement is tied to three key performance indicators, including reducing Scope 1 and 2 emissions by 50%, cutting Scope 3 emissions by 50%, and offering a full range of emission-free products by 2030. The loan will help Epiroc continue developing innovative, low-emission solutions for its global customer base while advancing its commitment to decarbonization. The company’s sustainability targets have been validated by the Science Based Targets initiative (SBTi).

(PRESS RELEASE) HELSINKI, 7-Oct-2024 — /EuropaWire/ — The Nordic Investment Bank (NIB) and Swedish mining equipment manufacturer Epiroc AB have agreed to a ten-year, USD 150 million sustainability-linked loan. This financing is tied to Epiroc’s ambitious climate goals, which are designed to help decarbonize the mining industry. Epiroc’s targets aim to cut carbon emissions across its operations and products, with plans to offer a complete range of emission-free alternatives by 2030. These sustainability targets have been validated by the Science Based Targets initiative (SBTi), aligning with the global goal of limiting warming to 1.5°C.

The loan is structured around three key performance indicators (KPIs) that will be assessed annually: reducing Scope 1 and 2 greenhouse gas emissions by 50% by 2030 from a 2019 baseline, cutting Scope 3 emissions from product use by 50%, and achieving an emission-free product range by 2030. Based on Epiroc’s progress, the loan’s interest rate margin will be adjusted to reflect performance.

NIB President and CEO André Küüsvek noted the significance of the agreement, stating that it illustrates how business actions and financial instruments can effectively support decarbonization efforts in sectors like mining, which are traditionally hard to abate. Håkan Folin, Epiroc’s CFO, emphasized that this financing will aid the development of solutions that reduce emissions, enhance safety, and improve productivity for customers, while advancing Epiroc’s 2030 sustainability goals.

Epiroc, which employs about 19,000 people and operates in 150 countries, is focused on providing innovative equipment and services for the mining and construction industries. Having already made progress in lowering its Scope 1 and 2 emissions, the company is committed to reducing its Scope 3 emissions, which account for 99% of its total emissions, largely generated by customers using its products. By 2030, Epiroc aims to deliver an entire product line of emission-free alternatives for both surface and underground operations, further reducing the environmental impact for its customers.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

Media Contacts:

Liisa Vuorinen
Senior Banker, Industry & Real Estate
+358 10 618 0248
Liisa.Vuorinen@nib.int

Vytautas Brazaitis
Senior Communications Officer
+358 10 618 0235
Vytautas.Brazaitis@nib.int

SOURCE: Nordic Investment Bank