Pandora bond targets diversity goals

Pandora is taking a fresh approach to a framework traditionally focused on environmental targets: This week the Danish jewelry giant became one of only a few global companies to raise debt against its ability to meet gender diversity targets. Pandora has issued a €500 million ($540 million) sustainability-linked bond on Ireland’s main stock exchange. Like many other companies, Pandora linked the debt to its goal of achieving a 36 percent reduction in carbon emissions by 2028 — but it’s also tied to its gender diversity target of having 44 percent women in leadership by the same deadline. If Pandora fails to meet its targets, it will face a penalty on the loan. Similar sustainability-linked financial mechanisms (like green bonds) are becoming a popular source?of capital for climate-friendly initiatives. Companies like Chanel, VF Corp, Burberry, and Adidas have all taken on debt tied to environmental initiatives in recent years. Read my latest for The Business of Fashion of fashion here: https://lnkd.in/e2999rfC #sustainabilitybonds #greenbonds #diversitytargets #diversityequityinclusion

Pandora announced it tied a 500 million EUR bond to sustainability targets. The targets are: ?? Cut CO2 emissions 36% by 2028 (from 2019, scope 1-3) ?? Reach at least 44% women in top leadership by 2028 These are new steps on the journey to halve CO2 emissions and reach full gender parity in leadership by 2030, some of Pandora's key sustainability commitments. What does this mean? ?? It means that if the targets aren't met, the company will pay serious penalties. And to my eyes, it shows Pandora is really committed to put everything in place to walk the talk and reach the targets that were set. #ESG #sustainability #diversity #DEI https://lnkd.in/eTbAqJ-U

This is one way to put your money where your sustainability goals are. Pandora is adopting a different approach to a framework traditionally focused on environmental targets and has agreed to pay a roughly $2 million penalty if it falls short of its gender diversity goal. Should more companies do this considering most will fall short of their environmental goals? With policies not enough to reinforce penalties, should shareholders impose these?

Pandora is now one of the few global companies to issue debt linked to achieving gender diversity targets. Yesterday, Pandora issued a €500 million ($540 million) sustainability-linked bond on Ireland’s main stock exchange. The debt is linked to Pandora's goal of achieving a 36 percent reduction in carbon emissions by 2028 — but it’s also tied to Pandora's gender diversity target of having 44 percent women in leadership by the same deadline. If Pandora fails to meet its targets, it will face a penalty of roughly €5 million on the loan. The fines are split 60 percent (€3 million) for carbon emission goals and 40 percent (€2 million) for gender diversity targets. Currently, all of Pandora’s financing — including two bonds, a revolving credit facility and a loan from the Nordic Investment Bank — is linked to sustainability. I am proud to be part of a company that "walks the talk"! Thanks to everyone involved.

Now that’s what commitment looks like ?? yes we all wish sustainability and DEI goals were accomplished on their own merit, but failing that, this tactic of tying targets to a bond is commendable!

B?rsen has our news on sustainability + finance. In short, we have tied a 500 million EUR bond to our targets for CO2 reductions and gender diversity. We will pay a penalty if we don't reach the two targets: 1?? Cut CO2 emissions 36% by 2028 (from 2019, scope 1-3) 2?? Reach at least 44% women in leadership by 2028 (VP and above, incl. Board of Directors) These are steps on our 2030 journey to halve CO2 emissions and reach full gender parity in leadership. See B?rsen below, or read LinkedIn's summary here https://lnkd.in/gYdP_Apt #ESG #sustainablefinance #circularity