Three Questions For Urike Rockel, Head of Treasury and Investor Relations Management, TIR GF:

“A Strong Signal“

 

Mrs. Rockel, LANXESS recently secured a new line of credit that is closely tied to our sustainability goals. Why does this represent an achievement for us?
Ulrike Rockel: This line of credit is the most important source of liquidity for us. And we secured it for the long term and at highly attractive terms. We are also sending a signal to our employees, customers, suppliers, and the capital market that we are making sustainability a top priority across the company – including in our financing – and are willing to be judged on it.

Can you briefly explain the criteria that the current project is based on? 

We negotiated two specific targets with the banks: the successful reduction of Scope 1, 2, and 3 greenhouse gas emissions, and an increase in the percentage of women in management positions. Both of which are goals that we have firmly enshrined in our corporate strategy. If we meet the targets, the negotiated interest rate improves in our favor; if we fail to meet them, it gets worse. This will be reviewed annually on the basis of set milestones. When it comes to these objectives, we are already very well positioned in both respects, stand out from our competitors, and can also prove this with verifiable data.

Will the topics of sustainability and financing continue to merge in the future?

Yes, because capital market participants don’t just want to read about sustainability goals in a sustainability report; they demand concrete evidence that a company truly stands behind them. As an important signal in this regard, LANXESS has linked the variable compensation paid to the members of the Board of Management to the achievement of our climate targets for several years now. In addition, we are making every effort to provide the agencies that issue the renowned ESG* ratings with important key figures and information. This is because their analyses serve as an objective decision-making tool for investors and banks. We are particularly proud of the fact that LANXESS has once again had its climate targets verified this year by the renowned Science Based Targets initiative (SBTi). This sets us apart from many other companies – and sends a signal to the capital market.

*ESG stands for environmental, social, and governance. It refers to a set of criteria used to evaluate corporate sustainability and business ethics.