Nokia announced today the signing of a EUR 1,500 million five-year multicurrency revolving credit facility (“RCF”) with two one-year extension options and introduced a sustainability pricing mechanism linking the margin of the RCF to two of Nokia’s key sustainability targets:
1) Reduction of greenhouse gas emissions attributed to Nokia’s operations and;
2) Reduction of greenhouse gas emissions attributed to Nokia’s customers’ use of Nokia’s products
Nokia’s targets include a 41% greenhouse gas emission reduction of its own operations and a 75% greenhouse gas emission reduction arising from the use of sold products by 2030 compared to the 2014 baseline. The margin of the RCF will increase or decrease depending on Nokia’s progress towards reaching these targets.
Nokia’s sustainability targets are accepted by Science Based Targets, ensuring that Nokia’s greenhouse gas emissions targets and paths towards those targets are independently validated to be in line with the Paris Agreement goal “to hold the increase in global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the increase to 1.5°C above pre-industrial levels”. Science Based Targets is a collaboration between the international not-for-profit organization CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
Kristian Pullola, Chief Financial Officer (CFO) at Nokia, said: “We’re delighted with the strong support and commitment from our key banking partners in this refinancing transaction that connects our financing strategy with our sustainability priorities.”
Karoliina Loikkanen, Head of Corporate Responsibility at Nokia, said: “Linking the pricing of the revolving credit facility to our sustainability targets is an important step towards demonstrating our broad-based commitment to our sustainability priorities. Our sustainability vision is to create the technology to connect the world, in a responsible way.”
The RCF will replace the EUR 1,579 million revolving credit facility agreement dated 26 June 2015.